Nuveen Diversified Dividend and Income Fund N-CSRS
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number
811-21407
Nuveen Diversified Dividend and Income Fund
(Exact name of registrant as specified in charter)
Nuveen Investments
333 West Wacker Drive
Chicago, IL 60606
(Address of principal executive offices) (Zip code)
Kevin J. McCarthy
Nuveen Investments
333 West Wacker Drive
Chicago, IL 60606
(Name and address of agent for service)
Registrants telephone number, including area code: (312) 917-7700
Date of fiscal year end: December 31
Date of reporting period: June 30, 2008
Form N-CSR is to be used by management investment companies to file reports with
the Commission not later than 10 days after the transmission to stockholders of
any report that is required to be transmitted to stockholders under Rule 30e-1
under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may
use the information provided on Form N-CSR in its regulatory, disclosure review,
inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR,
and the Commission will make this information public. A registrant is not
required to respond to the collection of information contained in Form N-CSR
unless the Form displays a currently valid Office of Management and Budget
(OMB) control number. Please direct comments concerning the accuracy of the
information collection burden estimate and any suggestions for reducing the
burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW,
Washington, DC 20549-0609. The OMB has reviewed this collection of information
under the clearance requirements of 44 U.S.C. SS. 3507.
ITEM 1. REPORTS
TO SHAREHOLDERS
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Semi-Annual
Report
June 30, 2008
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Nuveen Investments
Closed-End Funds
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NUVEEN DIVERSIFIED
DIVIDEND AND
INCOME FUND
JDD
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High
Current Income and Total Return from a
Portfolio
of Dividend-Paying Common Stocks, REIT Stocks,
Emerging
Markets Debt, and Senior Loans
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If you received your Nuveen Fund dividends and statements
from your financial advisor or brokerage account.
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OR
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www.nuveen.com/accountaccess
If you received your Nuveen Fund dividends and statements
directly from Nuveen.
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Chairmans
LETTER
TO
SHAREHOLDERS
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ï Robert
P.
Bremner ï Chairman
of the Board
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Dear Fellow
Shareholders:
Id like to use my initial letter to you to accomplish
several things. First, I want to report that after fourteen
years of service on your Funds Board, including the last
twelve as chairman, Tim Schwertfeger retired from the Board in
June. The Board has elected me to replace him as the chairman,
the first time this role has been filled by someone who is not
an employee of Nuveen Investments. Electing an independent
chairman marks a significant milestone in the management of your
Fund, and it aligns us with what is now considered a best
practice in the fund industry. Further, it demonstrates
the independence with which your Board has always acted on your
behalf.
Following Tim will not be easy. During my eleven previous years
on the Nuveen Fund Board, I found that Tim always set a very
high standard by combining insightful industry and market
knowledge and sound, clear judgment. While the Board will miss
his wise counsel, I am certain we will retain the primary
commitment Tim shared with all of usan unceasing
dedication to creating and retaining value for Nuveen Fund
shareholders. This focus on value over time is a touchstone that
I and all the other Board members will continue to use when
making decisions on your behalf.
Second, I also want to report that we are very fortunate to be
welcoming two new Board members to our team. John Amboian, the
current chairman and CEO of Nuveen Investments, has agreed to
replace Tim as Nuveens representative on the Board.
Johns presence will allow the independent Board members to
benefit not only from his leadership role at Nuveen but also his
broad understanding of the fund industry and Nuveens role
within it. We also are adding Terry Toth as an independent
director. A former CEO of the Northern Trust Companys
asset management group, Terry will bring extensive experience in
the fund industry to our deliberations.
Third, on behalf of the entire Board, I would like to
acknowledge the effort the whole Nuveen organization is making
to resolve the auction rate preferred share situation in a
satisfactory manner. As you know, we are actively pursuing a
number of possible solutions, all with the goal of providing
liquidity for preferred shareholders while preserving the
potential benefits of leverage for common shareholders. We
appreciate the patience you have shown as weve worked
through the many details involved.
Finally, I urge you to take the time to review the Portfolio
Managers Comments, the Common Share Distribution and Share
Price Information, and the Performance Overview sections of this
report. All of us are grateful that you have chosen Nuveen
Investments as a partner as you pursue your financial goals,
and, on behalf of myself and the other members of your
Funds Board, let me say we look forward to continuing to
earn your trust in the months and years ahead.
Sincerely,
Robert P. Bremner
Chairman of the Board
August 22, 2008
Portfolio Managers COMMENTS
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Nuveen Investments Closed-End Funds
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JDD
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JDD features portfolio management by teams at four separate
sub-advisers.
NWQ Investment Management Company, LLC, (NWQ), an affiliate
of Nuveen Investments, invests its portion of the Funds
assets in dividend-paying common stocks. Jon Bosse, Chief
Investment Officer of NWQ, leads the Funds management team
at that firm. He has more than 22 years of corporate
finance and investment management experience.
The real estate portion of the Fund investment portfolio is
managed by a team at Security Capital Research &
Management Incorporated, (Security Capital), a wholly-owned
subsidiary of JPMorgan Chase & Co. Anthony R. Manno
Jr. and Kenneth D. Statz, who each have more than 27 years
experience in managing real estate investments, lead the
team.
Symphony Asset Management, LLC, (Symphony), an affiliate of
Nuveen Investments, invests its portion of the Funds
assets primarily in senior loans. The Symphony team is led by
Gunther Stein and Lenny Mason, who have more than 25 years
of combined investment management experience.
Wellington Management Company, LLP (Wellington), invests its
portion of the Funds assets in emerging markets sovereign
debt. James W. Valone, who has more than 18 years of
investment management experience, heads the team.
Here representatives from NWQ, Symphony, Security Capital,
and Wellington talk about the markets, their management
strategies and the performance of the Fund for the six-month
period ending June 30, 2008.
IN THIS
ENVIRONMENT, WHAT KEY STRATEGIES WERE USED TO MANAGE THE
FUND?
For the equity portion of the Funds portfolio, we
continued to employ an opportunistic,
bottom-up
strategy that focused on identifying undervalued companies
possessing favorable risk/reward characteristics as well as
emerging catalysts that can unlock value or improve
profitability. These catalysts included management changes,
restructuring efforts, recognition of hidden assets, or a
positive change in the underlying fundamentals. We also focused
on downside protection, and paid a great deal of attention to a
companys balance sheet and cash flow statement, not just
the income statement. We believed that cash flow analysis
offered a more objective and truer picture of a companys
financial position than an evaluation based on earnings alone.
Discussions of specific investments are for illustrative
purposes only and are not intended as recommendations of
individual investments. The views expressed in this commentary
represent those of the portfolio managers as of the date of this
report and are subject to change at any time, based on market
conditions and other factors. The Fund disclaims any obligation
to advise shareholders of such changes.
4
During this extremely challenging period, our bias has been to
tread lightly in the financial sector with an underweight
position relative to the index. While we have made adjustments
to our financial holdings, we have not drastically altered our
positions. The Funds investments within the sector
continued to be diversified with the bulk of the holdings
seemingly well-capitalized. In March, we trimmed our stakes in
Bank of America Corporation and JPMorgan Chase & Co., and
eliminated IndyMac Bancorp in early May. We had hoped that
IndyMac would be able to raise capital, either through equity
issuance or by selling certain assets such as its reverse
mortgage business. However, as it became more evident that the
companys options for raising capital were greatly
diminished, we eliminated the position. (On July 11, 2008,
after the close of this reporting period, IndyMac Bancorp filed
for bankruptcy protection.) Beyond the financial sector, we
established a new position in POSCO, a Korean steelmaker, and
added to our stake in Motorola, Inc. Conversely, we eliminated
Clear Channel Communications, Inc. and trimmed several other
positions.
For the portion of the Funds portfolio invested primarily
in REIT securities, we sought to maintain significant property
type and geographic diversification while taking into account
company credit quality, sector, and security-type allocations.
Investment decisions were based on a multi-layered analysis of
the company, the real estate it owns, its management, and the
relative price of the security, with a focus on securities that
we believed would be best positioned to generate sustainable
income and potential price appreciation over the long-run.
Across all real estate sectors, we favored companies with
properties located in the strongest markets. Generally, these
markets were defined by high barrier to entry which
constrained new constructiona condition that in the past
has indicated long-term potential to provide significant value
enhancement and a real inflation hedge.
For the senior loan portion of the Fund, we continued to use
fundamental analysis to select loans that we believed offered
strong asset coverage and attractive risk-adjusted returns.
During this period, we avoided many loans issued by autos and
homebuilders, companies that generally require a confident
U.S. consumer and healthy U.S. economy to perform
well. We also avoided many smaller loans that were done to
finance leveraged buyouts. We didnt believe there was
sufficient value in these loans to compensate for the potential
illiquidity and volatility if the earnings of the companies
issuing loans remained challenged.
Although the loan portfolios suffered as a result of a
broad-based sell-off, the market dislocation also provided an
opportunity to buy loans in good companies with strong covenants
at attractive prices. We focused on adding quality senior loans
to the portfolio, which often were priced at a discount to par
and were structured with strong covenant protection. We also
continued to avoid the vast majority of second lien loans.
Similar to smaller loans, we didnt believe that second
lien loans offered sufficient additional yield to compensate
investors for potentially increased volatility and lower
recovery rates.
In the emerging markets sovereign debt potion of the Fund, we
were neutral to somewhat cautious during the period as the
global backdrop for the market remained challenging. Inflation
continued to be a significant concern for most developing
countries, and the response
5
of policy makers to rising prices was mixed. Country selection
continued to be extremely important, and our holdings remained
concentrated in countries with solid credit quality.
Past performance does not guarantee future results. Current
performance may be higher or lower than the data shown.
Returns do not reflect the deduction of taxes that shareholders
may have to pay on Fund distributions or upon the sale of Fund
shares. For additional information, see the individual
Performance Overview for the Fund in this report.
1 Comparative benchmark performance is a blended return
consisting of: 1) 18.75% of the return of the Russell 3000
Value Index, which measures the performance of those Russell
3000 Index companies with lower price-to-book ratios and lower
forecasted growth values, 2) 6.25% of the return of the
MSCI EAFE ex-Japan Value Index, a capitalization weighted index
that selects the lower 50% of the price-to-book ranked value
stocks traded in the developed markets of Europe, Asia and the
Far East, excluding Japan, 3) 25% of the return of the Dow
Jones Wilshire Real Estate Securities Index, an unmanaged,
market capitalization-weighted index comprised of publicly
traded REITs and real estate companies, 4) 25% of the
return of the JP Morgan EMBI Global Diversified Index, which
tracks total returns for
U.S.-dollar-denominated
debt instruments issued by emerging markets sovereign and quasi
sovereign entities, and 5) 25% of the return of the CSFB
Leveraged Loan Index, which consists of approximately
$150 billion of tradable term loans with at least one year
to maturity and rated BBB or lower. Index returns do not include
the effects of any sales charges or management fees. It is not
possible to invest directly in an index.
6
There also continued to be large differences between countries
within emerging markets, with the market distinguishing between
countries based on their policy framework, balance-of-payments
and economic vulnerabilities, and political risks. Consequently,
our risk positions were concentrated in countries with sound
credit underpinnings, such as Brazil and Russia.
By the end of the period, we were relatively underweighted
countries heavily dependent on the U.S. for exports or
remittances capital flows. Countries with weak banking sectors
and poor balance-of-payment positions, located primarily in
Eastern Europe, were another area we looked to avoid.
HOW DID THE FUND
PERFORM OVER THE SIX-MONTH PERIOD?
The performance of JDD, as well as a comparative benchmark, is
presented in the accompanying table.
Cumulative Total
Returns on Common Share Net Asset Value
For the six months ended
6/30/08
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JDD
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9.64%
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Comparative
Benchmark1
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5.69%
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For the six months ended June 30, 2008 the total return on
common share net asset value for the Fund underperformed their
unleveraged, unmanaged comparative benchmark.
One of the key factors in the performance of the Fund, relative
to that of the benchmark, was the Funds use of financial
leverage. Although leveraging provides opportunities for
additional income and total returns for common shareholders, it
can also expose shareholders to additional riskespecially
when market conditions are unfavorable. With the steep decrease
in prices in many domestic and international markets during this
period, the impact of these valuation changes on the Funds
return was magnified by the use of leverage. However, we firmly
believe that the use of this strategy should work to the benefit
of the Funds common shareholders over the long term.
Looking specifically at the equity portion of the portfolio,
ongoing disruptions in the capital markets contributed to
declines in our financial sector holdings. These stocks were
battered by concerns of increased credit losses and write-downs,
struggles in accessing the capital markets, and rumors regarding
the continued viability of some companies. There also were
concerns that existing shareholders would be diluted as these
companies raised additional capital. While finding downside
protection in the financial sector was extremely difficult, this
environment also meant that many well-capitalized firms with the
staying power to survive and prosper sometimes were trading at
extremely compelling valuations.
The markets concerns and fears were not solely
concentrated on the financial sector. We also witnessed steep
declines in consumer cyclical stocks such as traditional
retailers and autos
6
areas where we did not have significant exposure. We did have
some consumer discretionary exposure with our investments in CBS
Corp., Gannett Co. Inc., and Newell Rubbermaid Inc. Shares of
Motorola Inc. also performed poorly during the period, in part
because of problems within the companys handset division.
Following the tremendous success of their innovative RAZR cell
phones, delays in new product introductions have contributed to
lackluster sales and lost market share. We believe that new
management is addressing the companys challenges and we
remain positive on the holding.
Conversely, record crude prices and strong operating
fundamentals contributed to gains for our energy holdings, which
included Chevron Corp., Conoco Phillips, ENI S.p.A., and Total
S.A.. Our investments in Caterpillar Inc. and POSCO also posted
modest gains during a very weak environment for stocks. We
should also mention that we held several companies that were
operationally doing very well, yet their stock price did not
reflect these positive attributes. These included Lockheed
Martin Corp., Pitney Bowes Inc., and Raytheon Co, where we
believe the market did not acknowledge their relatively strong
balance sheets and other fundamentals.
Looking at the Funds preferred stock holdings, risk
premiums increased as the extent of the sub-prime market
problems became clearer and several financial firms, including
Lehman Brothers and Bear Stearns, became distressed. In
addition, many firms issued new preferred securities, which in
turn forced a general re-pricing of existing issues. The
Funds finance and investment, brokerage and banking
sectors holdings generally hurt overall performance during this
period. The best performing sectors were basic industries,
energy and insurance. The portfolio was positioned
conservatively during the period with an underweight in
financials and an overweight in industrials and utilities.
In a very volatile and generally negative period for real estate
securities, many of the Funds REIT investments lost
ground. However, the Funds allocation to securities
perceived to be especially defensive benefited relative
performance. The market also rewarded the Funds strong
allocation to multi-family companies as the fundamental outlook
for apartments remained solid despite the pressures in the
single family housing markets.
Another factor weighing on overall Fund performance was its
portfolio of senior loans, which generally performed poorly over
the period. One larger individual position which constrained
performance over the period was Michael Foods, Inc. However, we
did see relatively strong results from our Tribune Company and
Alltel positions.
The Funds emerging markets sovereign debt holdings
benefited from small overweightings to Brazil and Peru. Specific
security selection in Venezuela and overall yield curve
positioning in Argentina also benefited the portfolio. However,
an underweight to Africa, specifically Egypt and Gabon detracted
from relative performance as the region out performed emerging
markets as a whole over the period.
RECENT
DEVELOPMENTS IN THE AUCTION RATE PREFERRED SECURITIES (ARPS)
MARKETS
Beginning in February 2008, more shares for sale were submitted
in the regularly scheduled auctions for the preferred shares
issued by the Fund than there were offers to buy. This meant
7
that these auctions failed to clear and that many or
all auction preferred shareholders who wanted to sell their
shares in these auctions were unable to do so. This decline in
liquidity in auction preferred shares did not lower the credit
quality of these shares, and auction preferred shareholders
unable to sell their shares received distributions at the
maximum rate applicable to failed auctions as
calculated in accordance with the pre-established terms of the
auction preferred shares. At the time this report was prepared,
the Funds managers could not predict when future auctions
might succeed in attracting sufficient buyers for the shares
offered, if ever. The Funds managers are working
diligently to refund the auction preferred shares, and have made
progress in these efforts, but at present there is no assurance
that these efforts will succeed. These developments generally do
not affect the management or investment policies of the Fund.
However, one implication of these auction failures for common
shareholders is that the Funds cost of leverage will
likely be higher, at least temporarily, than it otherwise would
have been had the auctions continued to be successful. As a
result, the Funds future common share earnings may be
lower than they otherwise would have been.
For current, up-to-date information, please visit the Nuveen CEF
Auction Rate Preferred Resource Center at:
http://www.nuveen.com/ResourceCenter/AuctionRatePreferred.aspx.
8
Common Share
Distribution and Share Price
INFORMATION
We are providing you with information regarding your Funds
distributions. This information is as of June 30, 2008, and
likely will vary over time based on the Funds investment
activities and portfolio investment value changes.
The Fund employs financial leverage through the issuance of
FundPreferred shares, as well as through bank borrowings.
Financial leverage provides the potential for higher earnings
(net investment income), total returns and distributions over
time, but as noted earlier also
increases the variability of common shareholders net asset
value per share in response to changing market conditions. Over
the reporting period, the impact of financial leverage on the
Funds net asset value per share contributed positively to
the income return and detracted from the price return. The
overall impact of financial leverage detracted from the
Funds total return.
The Fund has a managed distribution program. The goal of a
managed distribution program is to provide common shareholders
with relatively consistent and predictable cash flow by
systematically converting its expected long-term return
potential into regular distributions. As a result, regular
common share distributions throughout the year are likely to
include a portion of expected long-term gains (both realized and
unrealized), along with net investment income.
Important points to understand about the managed distribution
program are:
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The Fund seeks to establish a relatively stable common share
distribution rate that roughly corresponds to the projected
total return from its investment strategy over an extended
period of time. However, you should not draw any conclusions
about the Funds past or future investment performance from
its current distribution rate.
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Actual common share returns will differ from projected long-term
returns (and therefore the Funds distribution rate), at
least over shorter time periods. Over a specific timeframe, the
difference between actual returns and total distributions will
be reflected in an increasing (returns exceed distributions) or
a decreasing (distributions exceed returns) Fund net asset value.
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Each distribution is expected to be paid from some or all of the
following sources:
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net investment income (regular interest and dividends),
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realized capital gains, and
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unrealized gains, or, in certain cases, a return of principal
(non-taxable
distributions).
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A
non-taxable
distribution is a payment of a portion of the Funds
capital. When the Funds returns exceed distributions, it
may represent portfolio gains generated, but not realized as a
taxable capital gain. In periods when the Funds returns
fall short of distributions, it will
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represent a portion of your original principal unless the
shortfall is offset during other time periods over the life of
your investment (previous or subsequent) when the Funds
total return exceeds distributions.
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Because distribution source estimates are updated during the
year based on the Funds performance and forecast for its
current fiscal year (which is the calendar year for the Fund),
estimates on the nature of your distributions provided at the
time the distributions are paid may differ from both the tax
information reported to you in your Funds IRS
Form 1099 statement provided at year end, as well as the
ultimate economic sources of distributions over the life of your
investment.
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The following table provides estimated information regarding the
Funds common share distributions and total return
performance for the six months ended June 30, 2008. The
distribution information is presented on a tax basis rather than
on a generally accepted accounting principles (GAAP) basis. This
information is intended to help you better understand whether
the Funds returns for the specified time period was
sufficient to meet the Funds distributions.
3 The Fund elected to retain a portion of its realized long-term
capital gains for the tax years ended December 31, 2007 and
December 31, 2006, and pay required federal corporate
income taxes on these amounts. As reported on Form 2439,
Common shareholders on record date must include their pro-rata
share of these gains on their applicable federal tax returns,
and are entitled to take offsetting tax credits, for their
pro-rata
share of the taxes paid by the Fund. The total returns
Including retained gain tax credit/refund include
the economic benefit to Common shareholders on record date of
these tax credits/refunds.
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As of 6/30/08 (Common Shares)
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JDD
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Inception date
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9/25/03
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Six months ended June 30, 2008:
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Per share distribution:
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From net investment income
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$0.40
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From realized capital gains
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From return of capital
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0.34
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Total per share distribution
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$0.74
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Distribution rate on NAV
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5.36%
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Annualized total returns:
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Excluding retained gain tax
credit/refund3:
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Six-Month (Cumulative) on NAV
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9.64%
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1-Year on NAV
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17.77%
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Since inception on NAV
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7.85%
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Including retained gain tax
credit/refund3:
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Six-Month (Cumulative) on NAV
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N/A
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1-Year on NAV
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16.37%
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Since inception on NAV
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8.58%
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COMMON SHARE
REPURCHASES AND SHARE PRICE INFORMATION
The Board of Directors/Trustees for each of Nuveens
120 closed-end funds approved a program, effective
August 7, 2008, under which each fund may repurchase up to
10% of its common shares.
As of June 30, 2008, the Fund was trading at a 12.82%
discount to its common share NAV, compared with an average
discount of 10.20% for the entire six-month period.
10
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Fund Snapshot
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Common Share Price
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$
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12.04
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Common Share Net Asset Value
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$
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13.81
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Premium/(Discount) to NAV
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-12.82%
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Current Distribution
Rate1
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12.29%
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Net Assets Applicable to
Common Shares ($000)
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$
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279,023
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Industries
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(as a % of total
investments)2
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Emerging Markets Debt
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26.5%
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Real Estate Investment Trust
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21.4%
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Media
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5.9%
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Diversified Telecommunication Services
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3.3%
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Oil, Gas & Consumable Fuels
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3.3%
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Hotels, Restaurants & Leisure
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2.9%
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Pharmaceuticals
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2.6%
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Health Care Providers & Services
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2.4%
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Aerospace & Defense
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1.9%
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Insurance
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1.9%
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Electric Utilities
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1.8%
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Commercial Services & Supplies
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1.6%
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Short-Term Investments
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|
|
5.0%
|
|
|
|
|
|
|
|
|
Other
|
|
|
19.5%
|
|
|
|
|
|
|
|
|
|
|
|
|
JDD
Performance
OVERVIEW
|
|
|
Nuveen
Diversified
Dividend and
Income Fund
as
of June 30, 2008
|
Portfolio
Allocation (as a % of total
investments)2
2007-2008
Distributions Per Common Share
|
|
|
|
|
|
Real Estate Investment Trust
|
|
|
Top Five Sub-Industries
|
|
|
(as a % of total
investments)2
|
|
|
Specialized
|
|
|
7.8%
|
|
|
|
Residential
|
|
|
4.8%
|
|
|
|
Office
|
|
|
4.1%
|
|
|
|
Retail
|
|
|
4.0%
|
|
|
|
Industrial
|
|
|
0.7%
|
|
|
|
|
|
|
|
|
|
Emerging Markets Debt
|
|
|
and Foreign Corporate Bonds
|
|
|
Top Five Countries
|
|
|
(as a % of total
investments)2
|
|
|
Brazil
|
|
|
3.0%
|
|
|
|
|
|
|
|
|
Russian Federation
|
|
|
2.5%
|
|
|
|
|
|
|
|
|
Peru
|
|
|
2.4%
|
|
|
|
|
|
|
|
|
Mexico
|
|
|
2.2%
|
|
|
|
|
|
|
|
|
Uruguay
|
|
|
1.9%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Annual Total Return
|
(Inception 9/25/03)
|
|
|
On Share Price
|
|
On NAV
|
|
|
6-Month (Cumulative)
|
|
|
-10.65
|
%
|
|
|
-9.64
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1-Year
|
|
|
-27.50
|
%
|
|
|
-17.77
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Since Inception
|
|
|
4.33
|
%
|
|
|
7.85
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Annual Total
Return3
|
(Including retained gain tax credit/refund)
|
|
|
On Share Price
|
|
On NAV
|
|
|
6-Month (Cumulative)
|
|
|
N/A
|
|
|
|
N/A
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1-Year
|
|
|
-26.10
|
%
|
|
|
-16.37
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Since Inception
|
|
|
5.13
|
%
|
|
|
8.58
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common Share
Price Performance
Weekly Closing
Price
|
|
1
|
Current Distribution Rate is based on the Funds current
annualized quarterly distribution divided by the Funds
current market price. The Funds quarterly distributions to
its shareholders may be comprised of ordinary income, net
realized capital gains and, if at the end of the calendar year
the Funds cumulative net ordinary income and net realized
gains are less than the amount of the Funds distributions,
a return of capital for tax purposes.
|
|
2
|
Excluding derivative transactions.
|
|
3
|
As previously explained in the Common Share Distribution and
Share Price Information Section of this report, the Fund elected
to retain a portion of its realized long-term capital gains for
the tax years ended December 31, 2007 and December 31,
2006, and pay required federal corporate income taxes on these
amounts. These standardized total returns include the economic
benefit to Common shareholders of record of this tax
credit/refund.
|
11
Shareholder
Meeting Report
The Annual Meeting of Shareholders was held in the offices of
Nuveen Investments on June 30, 2008.
|
|
|
|
|
|
|
JDD
|
Approval of the Board Members
was reached as follows:
|
|
|
|
|
|
|
Common and
|
|
|
|
|
FundPreferred
|
|
FundPreferred
|
|
|
shares voting
|
|
shares voting
|
|
|
together
|
|
together
|
|
|
as a class
|
|
as a class
|
John P. Amboian
|
|
|
|
|
For
|
|
18,337,762
|
|
|
Withhold
|
|
230,643
|
|
|
|
|
|
|
|
Total
|
|
18,568,405
|
|
|
|
|
|
|
|
William C. Hunter
|
|
|
|
|
For
|
|
|
|
4,081
|
Withhold
|
|
|
|
199
|
|
|
|
|
|
Total
|
|
|
|
4,280
|
|
|
|
|
|
David J. Kundert
|
|
|
|
|
For
|
|
18,328,903
|
|
|
Withhold
|
|
239,502
|
|
|
|
|
|
|
|
Total
|
|
18,568,405
|
|
|
|
|
|
|
|
William J. Schneider
|
|
|
|
|
For
|
|
|
|
4,081
|
Withhold
|
|
|
|
199
|
|
|
|
|
|
Total
|
|
|
|
4,280
|
|
|
|
|
|
Terence J. Toth
|
|
|
|
|
For
|
|
18,329,642
|
|
|
Withhold
|
|
238,763
|
|
|
|
|
|
|
|
Total
|
|
18,568,405
|
|
|
|
|
|
|
|
12
|
|
|
|
|
|
JDD
|
|
Nuveen Diversified Dividend and
Income Fund
Portfolio of INVESTMENTS
June 30,
2008 (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares
|
|
|
|
|
Description (1)
|
|
|
|
|
|
|
|
|
|
|
Value
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common Stocks 35.3% (22.1% of Total
Investments)
|
|
|
|
|
|
|
Aerospace & Defense 2.0%
|
|
25,700
|
|
|
|
|
Lockheed Martin Corporation
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
2,535,562
|
|
|
52,200
|
|
|
|
|
Raytheon Company
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,937,816
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Aerospace & Defense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
5,473,378
|
|
|
|
|
|
|
|
Capital Markets 1.0%
|
|
84,000
|
|
|
|
|
JPMorgan Chase & Co.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,882,040
|
|
|
|
|
|
|
|
Commercial Banks 1.0%
|
|
80,000
|
|
|
|
|
Bank of America Corporation
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,909,600
|
|
|
65,000
|
|
|
|
|
Wachovia Corporation
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,009,450
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Commercial Banks
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,919,050
|
|
|
|
|
|
|
|
Commercial Services & Supplies 1.7%
|
|
135,100
|
|
|
|
|
Pitney Bowes Inc.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4,606,910
|
|
|
|
|
|
|
|
Communications Equipment 1.0%
|
|
385,300
|
|
|
|
|
Motorola, Inc.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,828,102
|
|
|
|
|
|
|
|
Containers & Packaging 0.7%
|
|
95,000
|
|
|
|
|
Packaging Corp. of America
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,043,450
|
|
|
|
|
|
|
|
Diversified Financial Services 0.5%
|
|
75,100
|
|
|
|
|
Citigroup Inc.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,258,676
|
|
|
|
|
|
|
|
Diversified Telecommunication
Services 3.1%
|
|
77,500
|
|
|
|
|
AT&T Inc.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,610,975
|
|
|
90,000
|
|
|
|
|
KT Corporation, Sponsored ADR
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,918,800
|
|
|
52,500
|
|
|
|
|
Telecom Italia S.p.A., Sponsored ADR
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,047,900
|
|
|
87,000
|
|
|
|
|
Verizon Communications Inc.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3,079,800
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Diversified Telecommunication Services
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
8,657,475
|
|
|
|
|
|
|
|
Electric Utilities 1.2%
|
|
32,200
|
|
|
|
|
EDP Energias de Portugal, S.A., Sponsored ADR
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,681,787
|
|
|
118,000
|
|
|
|
|
Korea Electric Power Corporation, Sponsored ADR
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,714,540
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Electric Utilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3,396,327
|
|
|
|
|
|
|
|
Food Products 0.4%
|
|
39,722
|
|
|
|
|
Kraft Foods Inc.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,130,091
|
|
|
|
|
|
|
|
Hotels, Restaurants & Leisure 1.8%
|
|
126,900
|
|
|
|
|
Starwood Hotels & Resorts Worldwide, Inc.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
5,084,883
|
|
|
|
|
|
|
|
Household Durables 0.7%
|
|
112,000
|
|
|
|
|
Newell Rubbermaid Inc.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,880,480
|
|
|
|
|
|
|
|
Household Products 1.6%
|
|
73,000
|
|
|
|
|
Kimberly-Clark Corporation
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4,363,940
|
|
|
|
|
|
|
|
Industrial Conglomerates 0.9%
|
|
88,200
|
|
|
|
|
General Electric Company
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,354,058
|
|
|
|
|
|
|
|
Insurance 2.6%
|
|
75,000
|
|
|
|
|
Genworth Financial Inc., Class A
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,335,750
|
|
|
65,400
|
|
|
|
|
Hartford Financial Services Group, Inc.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4,222,878
|
|
|
40,000
|
|
|
|
|
Travelers Companies, Inc.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,736,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Insurance
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
7,294,628
|
|
|
|
|
|
|
|
Machinery 0.9%
|
|
32,700
|
|
|
|
|
Caterpillar Inc.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,413,914
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
13
|
|
|
|
|
|
JDD
|
|
Nuveen Diversified Dividend and
Income Fund (continued)
Portfolio of
INVESTMENTS June 30,
2008 (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares
|
|
|
|
|
Description (1)
|
|
|
|
|
|
|
|
|
|
|
Value
|
|
|
|
|
|
|
Media 0.9%
|
|
55,000
|
|
|
|
|
CBS Corporation, Class B
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
1,071,950
|
|
|
66,400
|
|
|
|
|
Gannett Company Inc.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,438,888
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Media
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,510,838
|
|
|
|
|
|
|
|
Metals & Mining 0.6%
|
|
13,000
|
|
|
|
|
POSCO, ADR
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,687,140
|
|
|
|
|
|
|
|
Multi-Utilities 0.8%
|
|
82,800
|
|
|
|
|
United Utilities PLC, Sponsored ADR
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,262,510
|
|
|
|
|
|
|
|
Oil, Gas & Consumable Fuels 4.9%
|
|
33,000
|
|
|
|
|
Chevron Corporation
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3,271,290
|
|
|
37,900
|
|
|
|
|
ConocoPhillips
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3,577,381
|
|
|
57,500
|
|
|
|
|
Eni S.p.A., Sponsored ADR
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4,268,225
|
|
|
30,000
|
|
|
|
|
Total S.A., Sponsored ADR
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,558,100
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Oil, Gas & Consumable Fuels
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
13,674,996
|
|
|
|
|
|
|
|
Paper & Forest Products 0.9%
|
|
71,100
|
|
|
|
|
International Paper Company
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,656,630
|
|
|
97,000
|
|
|
|
|
Stora Enso Oyj, Sponsored ADR
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
910,859
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Paper & Forest Products
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,567,489
|
|
|
|
|
|
|
|
Pharmaceuticals 2.6%
|
|
60,000
|
|
|
|
|
GlaxoSmithKline PLC, ADR
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,653,200
|
|
|
140,000
|
|
|
|
|
Pfizer Inc.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,445,800
|
|
|
68,000
|
|
|
|
|
Sanofi-Aventis, ADR
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,259,640
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Pharmaceuticals
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
7,358,640
|
|
|
|
|
|
|
|
Thrifts & Mortgage Finance 0.9%
|
|
129,200
|
|
|
|
|
Federal National Mortgage Association
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,520,692
|
|
|
|
|
|
|
|
Tobacco 2.6%
|
|
57,400
|
|
|
|
|
Altria Group, Inc.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,180,144
|
|
|
47,000
|
|
|
|
|
Lorillard Inc.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3,250,520
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
57,400
|
|
|
|
|
Philip Morris International
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,834,986
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Tobacco
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
7,265,650
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Common Stocks (cost $99,338,871)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
98,435,357
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares
|
|
|
|
|
Description (1)
|
|
|
|
|
|
|
|
|
|
|
Value
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real Estate Investment Trust Common
Stocks 34.2% (21.4% of Total Investments)
|
|
|
|
|
|
|
Industrial 1.2%
|
|
118,000
|
|
|
|
|
First Industrial Realty Trust, Inc.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
3,241,460
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Office 6.5%
|
|
54,400
|
|
|
|
|
Boston Properties, Inc.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4,907,968
|
|
|
200,300
|
|
|
|
|
Brandywine Realty Trust
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3,156,728
|
|
|
149,200
|
|
|
|
|
Mack-Cali Realty Corporation
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
5,098,164
|
|
|
61,900
|
|
|
|
|
SL Green Realty Corporation
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
5,120,368
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Office
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
18,283,228
|
|
|
|
|
|
|
|
Residential 7.7%
|
|
45,516
|
|
|
|
|
Apartment Investment & Management Company, Class A
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,550,275
|
|
|
57,500
|
|
|
|
|
AvalonBay Communities, Inc.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
5,126,700
|
|
|
106,400
|
|
|
|
|
Camden Property Trust
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4,709,264
|
|
|
133,500
|
|
|
|
|
Equity Residential
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
5,109,045
|
|
|
169,300
|
|
|
|
|
Post Properties, Inc.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
5,036,675
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Residential
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
21,531,959
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
14
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares
|
|
|
|
|
Description (1)
|
|
|
|
|
|
|
|
|
|
|
Value
|
|
|
|
|
|
|
Retail 6.3%
|
|
73,500
|
|
|
|
|
Federal Realty Investment Trust
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
5,071,500
|
|
|
82,200
|
|
|
|
|
Macerich Company
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
5,107,086
|
|
|
56,600
|
|
|
|
|
Simon Property Group, Inc.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
5,087,774
|
|
|
152,400
|
|
|
|
|
Westfield Group
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,378,479
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Retail
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
17,644,839
|
|
|
|
|
|
|
|
Specialized 12.5%
|
|
130,500
|
|
|
|
|
Cogdell Spencer Inc.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,120,625
|
|
|
473,300
|
|
|
|
|
DiamondRock Hospitality Company
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
5,154,237
|
|
|
347,300
|
|
|
|
|
Extra Space Storage Inc.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
5,334,528
|
|
|
149,200
|
|
|
|
|
Health Care Property Investors Inc.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4,746,052
|
|
|
309,000
|
|
|
|
|
Host Hotels & Resorts Inc.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4,217,850
|
|
|
37,174
|
|
|
|
|
Public Storage, Inc.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3,003,287
|
|
|
260,000
|
|
|
|
|
Senior Housing Properties Trust
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
5,077,800
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
120,500
|
|
|
|
|
Ventas Inc.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
5,129,685
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Specialized
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
34,784,064
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Real Estate Investment Trust Common Stocks (cost
$97,085,831)
|
|
|
|
|
|
|
95,485,550
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Principal
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amount (000)
|
|
|
|
|
Description (1)
|
|
Weighted Average Coupon
|
|
|
Maturity (3)
|
|
|
Ratings (2)
|
|
|
Value
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Variable Rate Senior Loan Interests 39.9%
(25.0% of Total Investments) (4)
|
|
|
|
|
|
|
Aerospace & Defense 1.1%
|
$
|
1,166
|
|
|
|
|
Hexcel Corporation, Term Loan B
|
|
|
4.504%
|
|
|
|
3/01/12
|
|
|
|
BB+
|
|
|
$
|
1,148,509
|
|
|
1,582
|
|
|
|
|
Vought Aircraft Industries, Inc., Term Loan
|
|
|
4.990%
|
|
|
|
12/22/11
|
|
|
|
Ba3
|
|
|
|
1,539,931
|
|
|
364
|
|
|
|
|
Vought Aircraft Industries, Inc., Tranche B, Letter of
Credit
|
|
|
4.953%
|
|
|
|
12/22/10
|
|
|
|
Ba3
|
|
|
|
347,727
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3,112
|
|
|
|
|
Total Aerospace & Defense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3,036,167
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Auto Components 0.7%
|
|
458
|
|
|
|
|
Gen Tek Inc., Additional Term Loan B
|
|
|
4.750%
|
|
|
|
2/28/11
|
|
|
|
BB
|
|
|
|
429,980
|
|
|
1,703
|
|
|
|
|
Gen Tek Inc., Term Loan B
|
|
|
4.750%
|
|
|
|
2/28/11
|
|
|
|
BB
|
|
|
|
1,598,796
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,161
|
|
|
|
|
Total Auto Components
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,028,776
|
|
|
|
|
|
|
|
Building Products 0.9%
|
|
780
|
|
|
|
|
Armstrong World Industries, Inc., Tranche B, Term Loan
|
|
|
4.233%
|
|
|
|
10/02/13
|
|
|
|
BBB
|
|
|
|
757,634
|
|
|
969
|
|
|
|
|
Stile Acquisition Corporation, Canadian Term Loan
|
|
|
4.893%
|
|
|
|
4/05/13
|
|
|
|
BB
|
|
|
|
900,121
|
|
|
971
|
|
|
|
|
Stile Acquisition Corporation, Term Loan B
|
|
|
4.892%
|
|
|
|
4/05/13
|
|
|
|
BB
|
|
|
|
901,654
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,720
|
|
|
|
|
Total Building Products
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,559,409
|
|
|
|
|
|
|
|
Chemicals 2.3%
|
|
400
|
|
|
|
|
Celanese Holdings LLC, Credit Linked Deposit
|
|
|
2.458%
|
|
|
|
4/02/14
|
|
|
|
BB+
|
|
|
|
381,313
|
|
|
1,584
|
|
|
|
|
Celanese Holdings LLC, Term Loan
|
|
|
4.188%
|
|
|
|
4/02/14
|
|
|
|
BB+
|
|
|
|
1,509,998
|
|
|
986
|
|
|
|
|
Georgia Gulf Corporation, Term Loan
|
|
|
4.950%
|
|
|
|
10/03/13
|
|
|
|
Ba3
|
|
|
|
951,858
|
|
|
1,965
|
|
|
|
|
Hexion Specialty Chemicals, Inc., Term Loan C-4
|
|
|
5.000%
|
|
|
|
5/05/13
|
|
|
|
Ba3
|
|
|
|
1,773,412
|
|
|
1,940
|
|
|
|
|
Rockwood Specialties Group, Inc., Term Loan E
|
|
|
4.399%
|
|
|
|
7/30/12
|
|
|
|
BB+
|
|
|
|
1,873,486
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
6,875
|
|
|
|
|
Total Chemicals
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
6,490,067
|
|
|
|
|
|
|
|
Commercial Services & Supplies 1.0%
|
|
105
|
|
|
|
|
Aramark Corporation, Letter of Credit
|
|
|
4.875%
|
|
|
|
1/24/14
|
|
|
|
BB
|
|
|
|
99,612
|
|
|
1,658
|
|
|
|
|
Aramark Corporation, Term Loan
|
|
|
4.676%
|
|
|
|
1/24/14
|
|
|
|
BB
|
|
|
|
1,567,961
|
|
|
1,097
|
|
|
|
|
Berry Plastics Holding Corporation, Term Loan
|
|
|
4.784%
|
|
|
|
4/03/15
|
|
|
|
BB
|
|
|
|
996,121
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,860
|
|
|
|
|
Total Commercial Services & Supplies
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,663,694
|
|
|
|
|
|
|
|
Containers & Packaging 1.3%
|
|
2,815
|
|
|
|
|
Graham Packaging Company, L.P., Term Loan
|
|
|
4.982%
|
|
|
|
10/07/11
|
|
|
|
B+
|
|
|
|
2,709,501
|
|
|
175
|
|
|
|
|
Smurfit-Stone Container Corporation, Deposit-Funded Commitment
|
|
|
4.684%
|
|
|
|
11/01/10
|
|
|
|
BB
|
|
|
|
170,027
|
|
|
196
|
|
|
|
|
Smurfit-Stone Container Corporation, Term Loan B
|
|
|
4.637%
|
|
|
|
11/01/11
|
|
|
|
BB
|
|
|
|
190,621
|
|
|
372
|
|
|
|
|
Smurfit-Stone Container Corporation, Term Loan C
|
|
|
4.644%
|
|
|
|
11/01/11
|
|
|
|
BB
|
|
|
|
362,096
|
|
|
117
|
|
|
|
|
Smurfit-Stone Container Corporation, Tranche C-1
|
|
|
4.500%
|
|
|
|
11/01/11
|
|
|
|
BB
|
|
|
|
113,643
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3,675
|
|
|
|
|
Total Containers & Packaging
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3,545,888
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
15
|
|
|
|
|
|
JDD
|
|
Nuveen Diversified Dividend and
Income Fund (continued)
Portfolio of
INVESTMENTS June 30,
2008 (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Principal
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amount (000)
|
|
|
|
|
Description (1)
|
|
Weighted Average Coupon
|
|
|
Maturity (3)
|
|
|
Ratings (2)
|
|
|
Value
|
|
|
|
|
|
|
Diversified Consumer Services 0.7%
|
$
|
1,970
|
|
|
|
|
Weight Watchers International, Inc., Term Loan B
|
|
|
4.250%
|
|
|
|
1/26/14
|
|
|
|
BB+
|
|
|
$
|
1,917,056
|
|
|
|
|
|
|
|
Diversified Telecommunication
Services 2.2%
|
|
1,985
|
|
|
|
|
Alltel Communications, Inc., Term Loan B-3
|
|
|
5.232%
|
|
|
|
5/18/15
|
|
|
|
BB
|
|
|
|
1,975,075
|
|
|
1,945
|
|
|
|
|
Intelsat,Tranche B, Term Loan
|
|
|
5.184%
|
|
|
|
7/01/13
|
|
|
|
BB
|
|
|
|
1,897,956
|
|
|
1,965
|
|
|
|
|
MetroPCS Wireless, Inc., Term Loan
|
|
|
4.989%
|
|
|
|
11/03/13
|
|
|
|
Ba3
|
|
|
|
1,882,102
|
|
|
465
|
|
|
|
|
Verifone, Inc., Term Loan B
|
|
|
5.650%
|
|
|
|
10/31/13
|
|
|
|
BB
|
|
|
|
446,400
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
6,360
|
|
|
|
|
Total Diversified Telecommunication Services
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
6,201,533
|
|
|
|
|
|
|
|
Electric Utilities 1.7%
|
|
1,702
|
|
|
|
|
Dynegy Holdings, Inc., Delayed Term Loan
|
|
|
3.983%
|
|
|
|
4/02/13
|
|
|
|
Ba1
|
|
|
|
1,605,957
|
|
|
296
|
|
|
|
|
Dynegy Holdings, Inc., Term Loan
|
|
|
3.983%
|
|
|
|
4/02/13
|
|
|
|
Ba1
|
|
|
|
278,935
|
|
|
1,990
|
|
|
|
|
TXU Corporation, Term Loan B-2
|
|
|
6.235%
|
|
|
|
10/10/14
|
|
|
|
Ba3
|
|
|
|
1,846,139
|
|
|
995
|
|
|
|
|
TXU Corporation, Term Loan B-3
|
|
|
6.262%
|
|
|
|
10/10/14
|
|
|
|
Ba3
|
|
|
|
922,385
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4,983
|
|
|
|
|
Total Electric Utilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4,653,416
|
|
|
|
|
|
|
|
Electrical Equipment 0.5%
|
|
1,409
|
|
|
|
|
Sensus Metering Systems, Inc., Term Loan B-1
|
|
|
4.652%
|
|
|
|
12/17/10
|
|
|
|
BB
|
|
|
|
1,338,261
|
|
|
36
|
|
|
|
|
Sensus Metering Systems, Inc., Term Loan B-2
|
|
|
4.483%
|
|
|
|
12/17/10
|
|
|
|
BB
|
|
|
|
34,489
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,445
|
|
|
|
|
Total Electrical Equipment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,372,750
|
|
|
|
|
|
|
|
Electronic Equipment &
Instruments 0.3%
|
|
980
|
|
|
|
|
Sensata Technologies B.V., Term Loan
|
|
|
4.663%
|
|
|
|
4/27/13
|
|
|
|
BB
|
|
|
|
910,584
|
|
|
|
|
|
|
|
Food Products 1.5%
|
|
1,990
|
|
|
|
|
Dean Foods Company Term Loan
|
|
|
4.305%
|
|
|
|
4/02/14
|
|
|
|
BB
|
|
|
|
1,886,821
|
|
|
2,315
|
|
|
|
|
Michael Foods, Inc., Term Loan B
|
|
|
4.867%
|
|
|
|
11/21/10
|
|
|
|
BB
|
|
|
|
2,268,836
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4,305
|
|
|
|
|
Total Food Products
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4,155,657
|
|
|
|
|
|
|
|
Gas Utilities 0.7%
|
|
2,000
|
|
|
|
|
Energy Transfer Partners LP, Term Loan
|
|
|
4.508%
|
|
|
|
11/01/12
|
|
|
|
BBB
|
|
|
|
1,953,929
|
|
|
|
|
|
|
|
Health Care Equipment &
Supplies 1.0%
|
|
240
|
|
|
|
|
Bausch & Lomb, Inc., Delayed Draw, Term Loan, (5)
|
|
|
4.130%
|
|
|
|
4/24/15
|
|
|
|
BB
|
|
|
|
232,875
|
|
|
1,592
|
|
|
|
|
Bausch & Lomb, Inc., Term Loan
|
|
|
5.946%
|
|
|
|
4/24/15
|
|
|
|
BB
|
|
|
|
1,563,643
|
|
|
995
|
|
|
|
|
Biomet, Inc., Term Loan
|
|
|
5.801%
|
|
|
|
3/24/15
|
|
|
|
BB
|
|
|
|
976,815
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,827
|
|
|
|
|
Total Health Care Equipment & Supplies
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,773,333
|
|
|
|
|
|
|
|
Health Care Providers &
Services 3.9%
|
|
96
|
|
|
|
|
Community Health Systems, Inc., Delayed Draw, Term Loan, (5), (6)
|
|
|
1.000%
|
|
|
|
7/25/14
|
|
|
|
BB
|
|
|
|
(5,364
|
)
|
|
1,872
|
|
|
|
|
Community Health Systems, Inc., Term Loan
|
|
|
4.859%
|
|
|
|
7/25/14
|
|
|
|
BB
|
|
|
|
1,767,111
|
|
|
1,265
|
|
|
|
|
DaVita Inc., Term Loan B-1
|
|
|
4.084%
|
|
|
|
10/05/12
|
|
|
|
BB+
|
|
|
|
1,218,091
|
|
|
1,970
|
|
|
|
|
HCA, Inc., Term Loan
|
|
|
5.051%
|
|
|
|
11/18/13
|
|
|
|
BB
|
|
|
|
1,852,940
|
|
|
1,886
|
|
|
|
|
Health Management Associates, Inc., Term Loan
|
|
|
4.551%
|
|
|
|
2/28/14
|
|
|
|
BB
|
|
|
|
1,758,006
|
|
|
1,038
|
|
|
|
|
LifePoint Hospitals, Inc., Term Loan B
|
|
|
4.274%
|
|
|
|
4/18/12
|
|
|
|
BB
|
|
|
|
1,013,477
|
|
|
1,955
|
|
|
|
|
Quintiles Transnational Corporation, Term Loan B
|
|
|
4.810%
|
|
|
|
3/29/13
|
|
|
|
BB
|
|
|
|
1,893,906
|
|
|
188
|
|
|
|
|
United Surgical Partners International, Inc., Delayed Term Loan
|
|
|
4.918%
|
|
|
|
4/18/14
|
|
|
|
Ba3
|
|
|
|
170,565
|
|
|
1,242
|
|
|
|
|
United Surgical Partners International, Inc., Term Loan
|
|
|
5.490%
|
|
|
|
4/18/14
|
|
|
|
Ba3
|
|
|
|
1,155,375
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
11,512
|
|
|
|
|
Total Health Care Providers & Services
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10,824,107
|
|
|
|
|
|
|
|
Hotels, Restaurants & Leisure 2.8%
|
|
1,955
|
|
|
|
|
24 Hour Fitness Worldwide, Inc., Term Loan B
|
|
|
5.097%
|
|
|
|
6/08/12
|
|
|
|
Ba3
|
|
|
|
1,847,475
|
|
|
769
|
|
|
|
|
CBRL Group, Inc., Term Loan B-1
|
|
|
4.290%
|
|
|
|
4/28/13
|
|
|
|
Ba2
|
|
|
|
727,540
|
|
|
92
|
|
|
|
|
CBRL Group, Inc., Term Loan B-2
|
|
|
4.290%
|
|
|
|
4/28/13
|
|
|
|
BB
|
|
|
|
87,445
|
|
|
1,945
|
|
|
|
|
Penn National Gaming, Inc., Term Loan B
|
|
|
4.533%
|
|
|
|
10/03/12
|
|
|
|
BBB
|
|
|
|
1,889,622
|
|
|
89
|
|
|
|
|
Travelport LLC, Letter of Credit
|
|
|
5.051%
|
|
|
|
8/23/13
|
|
|
|
BB
|
|
|
|
80,498
|
|
|
445
|
|
|
|
|
Travelport LLC, Term Loan
|
|
|
4.733%
|
|
|
|
8/23/13
|
|
|
|
BB
|
|
|
|
401,185
|
|
|
600
|
|
|
|
|
Venetian Casino Resort LLC, Delayed Draw Term Loan
|
|
|
4.560%
|
|
|
|
5/23/14
|
|
|
|
BB
|
|
|
|
547,958
|
|
|
2,376
|
|
|
|
|
Venetian Casino Resort LLC, Term Loan
|
|
|
4.550%
|
|
|
|
5/23/14
|
|
|
|
BB
|
|
|
|
2,169,915
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
8,271
|
|
|
|
|
Total Hotels, Restaurants & Leisure
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
7,751,638
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
16
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Principal
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amount (000)
|
|
|
|
|
Description (1)
|
|
Weighted Average Coupon
|
|
|
Maturity (3)
|
|
|
Ratings (2)
|
|
|
Value
|
|
|
|
|
|
|
Independent Power Producers & Energy
Traders 1.2%
|
$
|
750
|
|
|
|
|
Kgen LLC, Synthetic Letter of Credit
|
|
|
4.500%
|
|
|
|
2/05/14
|
|
|
|
BB
|
|
|
$
|
716,250
|
|
|
1,231
|
|
|
|
|
Kgen LLC, Term Loan B
|
|
|
4.563%
|
|
|
|
2/05/14
|
|
|
|
BB
|
|
|
|
1,175,844
|
|
|
469
|
|
|
|
|
NRG Energy Inc., Credit Linked Deposit
|
|
|
2.701%
|
|
|
|
2/01/13
|
|
|
|
Ba1
|
|
|
|
447,495
|
|
|
957
|
|
|
|
|
NRG Energy Inc., Term Loan
|
|
|
4.301%
|
|
|
|
2/01/13
|
|
|
|
Ba1
|
|
|
|
913,558
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3,407
|
|
|
|
|
Total Independent Power Producers & Energy Traders
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3,253,147
|
|
|
|
|
|
|
|
Insurance 0.3%
|
|
1,162
|
|
|
|
|
Conseco, Inc., Term Loan
|
|
|
4.483%
|
|
|
|
10/10/13
|
|
|
|
Ba3
|
|
|
|
1,014,037
|
|
|
|
|
|
|
|
IT Services 1.3%
|
|
1,985
|
|
|
|
|
First Data Corporation, Term Loan B-1
|
|
|
5.261%
|
|
|
|
9/24/14
|
|
|
|
BB
|
|
|
|
1,827,193
|
|
|
2,032
|
|
|
|
|
SunGard Data Systems, Inc., Term Loan B
|
|
|
4.508%
|
|
|
|
2/28/14
|
|
|
|
BB
|
|
|
|
1,928,863
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4,017
|
|
|
|
|
Total IT Services
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3,756,056
|
|
|
|
|
|
|
|
Media 8.6%
|
|
1,980
|
|
|
|
|
CanWest Mediaworks LP, Term Loan
|
|
|
4.649%
|
|
|
|
7/10/15
|
|
|
|
Ba2
|
|
|
|
1,866,150
|
|
|
988
|
|
|
|
|
Cequel Communications LLC, Term Loan B
|
|
|
4.724%
|
|
|
|
11/05/13
|
|
|
|
BB
|
|
|
|
928,003
|
|
|
2,189
|
|
|
|
|
Charter Communications Operating Holdings LLC, Term Loan
|
|
|
4.900%
|
|
|
|
3/06/14
|
|
|
|
B+
|
|
|
|
1,927,065
|
|
|
1,955
|
|
|
|
|
CSC Holdings, Inc., Term Loan
|
|
|
4.225%
|
|
|
|
3/29/13
|
|
|
|
BBB
|
|
|
|
1,861,735
|
|
|
1,980
|
|
|
|
|
Discovery Communications Holdings LLC, Term Loan
|
|
|
4.801%
|
|
|
|
5/14/14
|
|
|
|
B+
|
|
|
|
1,946,340
|
|
|
1,924
|
|
|
|
|
Emmis Operating Company, New Term Loan
|
|
|
4.782%
|
|
|
|
11/01/13
|
|
|
|
B+
|
|
|
|
1,705,304
|
|
|
1,970
|
|
|
|
|
Idearc, Inc., Term Loan
|
|
|
4.787%
|
|
|
|
11/17/14
|
|
|
|
BB
|
|
|
|
1,580,925
|
|
|
973
|
|
|
|
|
Metro-Goldwyn-Mayer
Studios, Inc., Term Loan B
|
|
|
6.051%
|
|
|
|
4/08/12
|
|
|
|
N/R
|
|
|
|
800,648
|
|
|
1,965
|
|
|
|
|
Neilsen Finance LLC, Term Loan
|
|
|
4.734%
|
|
|
|
8/09/13
|
|
|
|
Ba3
|
|
|
|
1,835,883
|
|
|
1,980
|
|
|
|
|
Tribune Company, Term Loan B
|
|
|
5.482%
|
|
|
|
6/04/14
|
|
|
|
B
|
|
|
|
1,497,375
|
|
|
933
|
|
|
|
|
Tribune Company, Term Loan X
|
|
|
5.478%
|
|
|
|
6/04/09
|
|
|
|
B
|
|
|
|
896,389
|
|
|
2,000
|
|
|
|
|
Univision Communications, Inc., Term Loan
|
|
|
5.149%
|
|
|
|
9/29/14
|
|
|
|
Ba3
|
|
|
|
1,651,250
|
|
|
2,000
|
|
|
|
|
UPC Broadband Holding BV, Term Loan N
|
|
|
4.209%
|
|
|
|
12/31/14
|
|
|
|
Ba3
|
|
|
|
1,893,500
|
|
|
1,904
|
|
|
|
|
WMG Acquisition Corporation, Term Loan
|
|
|
4.704%
|
|
|
|
2/28/11
|
|
|
|
BB
|
|
|
|
1,807,649
|
|
|
2,000
|
|
|
|
|
Yell Group PLC, Term Loan
|
|
|
4.483%
|
|
|
|
10/27/12
|
|
|
|
Ba3
|
|
|
|
1,801,429
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
26,741
|
|
|
|
|
Total Media
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
23,999,645
|
|
|
|
|
|
|
|
Metals & Mining 0.6%
|
|
674
|
|
|
|
|
Amsted Industries, Inc., Delayed Draw Term Loan
|
|
|
4.791%
|
|
|
|
4/08/13
|
|
|
|
BB
|
|
|
|
660,804
|
|
|
928
|
|
|
|
|
Amsted Industries, Inc., Term Loan
|
|
|
4.720%
|
|
|
|
4/08/13
|
|
|
|
BB
|
|
|
|
909,672
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,602
|
|
|
|
|
Total Metals & Mining
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,570,476
|
|
|
|
|
|
|
|
Oil, Gas & Consumable Fuels 0.3%
|
|
387
|
|
|
|
|
Targa Resources, Inc., Synthetic Letter of Credit
|
|
|
4.783%
|
|
|
|
10/31/12
|
|
|
|
Ba3
|
|
|
|
377,742
|
|
|
682
|
|
|
|
|
Targa Resources, Inc., Term Loan B
|
|
|
4.654%
|
|
|
|
10/31/12
|
|
|
|
Ba3
|
|
|
|
665,361
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,069
|
|
|
|
|
Total Oil, Gas & Consumable Fuels
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,043,103
|
|
|
|
|
|
|
|
Paper & Forest Products 0.7%
|
|
1,940
|
|
|
|
|
Georgia-Pacific Corporation, Term Loan B
|
|
|
4.449%
|
|
|
|
12/21/12
|
|
|
|
BB+
|
|
|
|
1,834,865
|
|
|
|
|
|
|
|
Pharmaceuticals 1.5%
|
|
2,172
|
|
|
|
|
Mylan Laboratories Inc., Term Loan
|
|
|
5.750%
|
|
|
|
10/02/14
|
|
|
|
BB
|
|
|
|
2,154,766
|
|
|
1,975
|
|
|
|
|
Royalty Pharma Finance Trust, Term Loan
|
|
|
5.051%
|
|
|
|
4/16/13
|
|
|
|
Baa2
|
|
|
|
1,966,977
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4,147
|
|
|
|
|
Total Pharmaceuticals
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4,121,743
|
|
|
|
|
|
|
|
Real Estate Management &
Development 0.4%
|
|
1,320
|
|
|
|
|
LNR Property Corporation, Term Loan B
|
|
|
6.030%
|
|
|
|
7/12/11
|
|
|
|
BB
|
|
|
|
1,109,625
|
|
|
|
|
|
|
|
Road & Rail 0.8%
|
|
111
|
|
|
|
|
Hertz Corporation, Letter of Credit
|
|
|
5.051%
|
|
|
|
12/21/12
|
|
|
|
BB+
|
|
|
|
105,417
|
|
|
613
|
|
|
|
|
Hertz Corporation, Term Loan
|
|
|
4.231%
|
|
|
|
12/21/12
|
|
|
|
BB+
|
|
|
|
581,533
|
|
|
1,767
|
|
|
|
|
Swift Transportation Company, Inc., Term Loan
|
|
|
6.125%
|
|
|
|
5/10/14
|
|
|
|
B+
|
|
|
|
1,425,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,491
|
|
|
|
|
Total Road & Rail
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,111,950
|
|
|
|
|
|
|
|
Specialty Retail 0.5%
|
|
1,500
|
|
|
|
|
TRU 2005 RE Holding Co. I LLC, Term Loan
|
|
|
5.459%
|
|
|
|
12/08/08
|
|
|
|
B3
|
|
|
|
1,415,625
|
|
|
|
|
|
|
|
Textiles, Apparel & Luxury
Goods 0.5%
|
|
1,395
|
|
|
|
|
HBI Branded Apparel Limited, Inc., Term Loan
|
|
|
4.638%
|
|
|
|
9/05/13
|
|
|
|
BB+
|
|
|
|
1,352,368
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
17
|
|
|
|
|
|
JDD
|
|
Nuveen Diversified Dividend and
Income Fund (continued)
Portfolio of
INVESTMENTS June 30,
2008 (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Principal
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amount (000)
|
|
|
|
|
Description (1)
|
|
Weighted Average Coupon
|
|
|
Maturity (3)
|
|
|
Ratings (2)
|
|
|
Value
|
|
|
|
|
|
|
Trading Companies &
Distributors 0.6%
|
$
|
922
|
|
|
|
|
Ashtead Group Public Limited Company, Term Loan
|
|
|
4.500%
|
|
|
|
8/31/11
|
|
|
|
BB+
|
|
|
$
|
875,900
|
|
|
196
|
|
|
|
|
Brenntag Holdings GmbH and Co. KG, Acquisition Facility
|
|
|
5.794%
|
|
|
|
1/20/14
|
|
|
|
B+
|
|
|
|
184,580
|
|
|
804
|
|
|
|
|
Brenntag Holdings GmbH and Co. KG, Facility B2
|
|
|
5.794%
|
|
|
|
1/20/14
|
|
|
|
B+
|
|
|
|
755,418
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,922
|
|
|
|
|
Total Trading Companies & Distributors
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,815,898
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
118,769
|
|
|
|
|
Total Variable Rate Senior Loan Interests (cost
$118,059,562)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
111,236,542
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Principal
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amount (000) (7)
|
|
|
|
|
Description (1)
|
|
Coupon
|
|
|
Maturity
|
|
|
Ratings (2)
|
|
|
Value
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Emerging Markets Debt and Foreign Corporate
Bonds 42.4% (26.5% of Total Investments)
|
|
|
|
|
|
|
Argentina 1.9%
|
$
|
420
|
|
|
|
|
Alto Parana S.A., 144A
|
|
|
6.375%
|
|
|
|
6/09/17
|
|
|
|
BBB+
|
|
|
$
|
417,186
|
|
|
2,885
|
|
|
|
|
Argentina Republic
|
|
|
7.000%
|
|
|
|
4/17/17
|
|
|
|
B+
|
|
|
|
2,030,319
|
|
|
3,332
|
|
|
|
|
Republic of Argentina
|
|
|
3.092%
|
|
|
|
8/03/12
|
|
|
|
B+
|
|
|
|
1,796,943
|
|
|
1,334
|
|
|
ARS
|
|
Republic of Argentina
|
|
|
8.280%
|
|
|
|
12/31/33
|
|
|
|
B+
|
|
|
|
1,022,682
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Argentina
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
5,267,130
|
|
|
|
|
|
|
|
Brazil 4.7%
|
|
1,500
|
|
|
BRL
|
|
Banco ABN AMRO Real S.A., Reg S
|
|
|
16.200%
|
|
|
|
2/22/10
|
|
|
|
N/R
|
|
|
|
959,079
|
|
|
190
|
|
|
|
|
Centrais Eletricas Brasileiras S.A., 144A
|
|
|
7.750%
|
|
|
|
11/30/15
|
|
|
|
BBB
|
|
|
|
205,200
|
|
|
400
|
|
|
|
|
Cia Brasileira de Bebidas
|
|
|
10.500%
|
|
|
|
12/15/11
|
|
|
|
BBB
|
|
|
|
459,000
|
|
|
1,370
|
|
|
BRL
|
|
Companhia Energetica de Sao Paulo, Corporate Bond, 144A
|
|
|
9.750%
|
|
|
|
1/15/15
|
|
|
|
Ba3
|
|
|
|
951,343
|
|
|
765
|
|
|
EUR
|
|
Federative Republic of Brazil
|
|
|
8.500%
|
|
|
|
9/24/12
|
|
|
|
BBB
|
|
|
|
1,303,823
|
|
|
295
|
|
|
|
|
Federative Republic of Brazil
|
|
|
8.750%
|
|
|
|
2/04/25
|
|
|
|
BBB
|
|
|
|
369,930
|
|
|
590
|
|
|
|
|
Globo Comunicacao Participacoes, S.A., 144A
|
|
|
7.250%
|
|
|
|
4/26/22
|
|
|
|
BB+
|
|
|
|
587,050
|
|
|
405
|
|
|
|
|
ISA Capital do Brasil S.A., 144A
|
|
|
8.800%
|
|
|
|
1/30/17
|
|
|
|
BB
|
|
|
|
422,213
|
|
|
1,955
|
|
|
|
|
National Development Company, 144A
|
|
|
6.369%
|
|
|
|
6/16/18
|
|
|
|
Baa3
|
|
|
|
1,955,000
|
|
|
92
|
|
|
BRL
|
|
National Treasury Note of Brazil
|
|
|
6.000%
|
|
|
|
8/15/10
|
|
|
|
BBB+
|
|
|
|
973,515
|
|
|
200
|
|
|
BRL
|
|
National Treasury Note of Brazil
|
|
|
6.000%
|
|
|
|
5/15/15
|
|
|
|
BB+
|
|
|
|
2,008,988
|
|
|
185
|
|
|
BRL
|
|
National Treasury Note of Brazil
|
|
|
10.000%
|
|
|
|
1/01/17
|
|
|
|
BBB+
|
|
|
|
903,235
|
|
|
930
|
|
|
|
|
Petrobras International Finance Company
|
|
|
5.875%
|
|
|
|
3/01/18
|
|
|
|
BBB
|
|
|
|
899,258
|
|
|
535
|
|
|
|
|
Petrobras International Finance Company
|
|
|
8.375%
|
|
|
|
12/10/18
|
|
|
|
BBB
|
|
|
|
612,575
|
|
|
1,100
|
|
|
BRL
|
|
RBS Zero Hora Editora Jornalistica S.A., 144A
|
|
|
11.250%
|
|
|
|
6/15/17
|
|
|
|
BB
|
|
|
|
549,794
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Brazil
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
13,160,003
|
|
|
|
|
|
|
|
Chile 2.4%
|
|
565
|
|
|
|
|
Celulosa Arauco Y Constitucion
|
|
|
5.625%
|
|
|
|
4/20/15
|
|
|
|
BBB+
|
|
|
|
549,182
|
|
|
600
|
|
|
|
|
Coldelco Inc., Reg S
|
|
|
6.375%
|
|
|
|
11/30/12
|
|
|
|
Aa3
|
|
|
|
632,390
|
|
|
450
|
|
|
|
|
Corporacion Nacional del Cobre de Chile, Reg S
|
|
|
5.625%
|
|
|
|
9/21/35
|
|
|
|
Aa3
|
|
|
|
399,403
|
|
|
1,245
|
|
|
|
|
Corporacion Nacional del Cobre de Chile, Reg S
|
|
|
6.150%
|
|
|
|
10/24/36
|
|
|
|
Aa3
|
|
|
|
1,202,618
|
|
|
430
|
|
|
|
|
Corporacion Nacional del Cobre, 144A
|
|
|
5.500%
|
|
|
|
10/15/13
|
|
|
|
Aa3
|
|
|
|
435,836
|
|
|
1,765
|
|
|
|
|
Corporacion Nacional del Cobre, 144A
|
|
|
4.750%
|
|
|
|
10/15/14
|
|
|
|
Aa3
|
|
|
|
1,699,594
|
|
|
245
|
|
|
|
|
Empresa Nacional del Petroleo, Reg S
|
|
|
6.750%
|
|
|
|
11/15/12
|
|
|
|
A
|
|
|
|
255,660
|
|
|
1,100
|
|
|
|
|
Empresa Nacional del Petroleo, 144A
|
|
|
4.875%
|
|
|
|
3/15/14
|
|
|
|
A
|
|
|
|
1,041,868
|
|
|
550
|
|
|
|
|
Enersis S.A.
|
|
|
7.375%
|
|
|
|
1/15/14
|
|
|
|
BBB
|
|
|
|
584,855
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Chile
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
6,801,406
|
|
|
|
|
|
|
|
Colombia 1.0%
|
|
175
|
|
|
|
|
Bancolombia S.A.
|
|
|
6.875%
|
|
|
|
5/25/17
|
|
|
|
Baa3
|
|
|
|
173,250
|
|
|
650,000
|
|
|
COP
|
|
Bogota Distrito Capital, 144A
|
|
|
9.750%
|
|
|
|
7/26/28
|
|
|
|
BB+
|
|
|
|
251,647
|
|
|
470
|
|
|
|
|
EEB International Limited, 144A
|
|
|
8.750%
|
|
|
|
10/31/14
|
|
|
|
BB
|
|
|
|
500,550
|
|
|
350
|
|
|
|
|
Republic of Colombia
|
|
|
8.250%
|
|
|
|
12/22/14
|
|
|
|
BBB
|
|
|
|
399,875
|
|
|
1,023,000
|
|
|
COP
|
|
Republic of Colombia
|
|
|
12.000%
|
|
|
|
10/22/15
|
|
|
|
BB+
|
|
|
|
557,702
|
|
|
597,000
|
|
|
COP
|
|
Republic of Colombia
|
|
|
9.850%
|
|
|
|
6/28/27
|
|
|
|
BB+
|
|
|
|
244,216
|
|
|
635
|
|
|
|
|
TGI International Inc., 144A
|
|
|
9.500%
|
|
|
|
10/03/17
|
|
|
|
BB
|
|
|
|
681,831
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Colombia
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,809,071
|
|
|
|
|
|
|
|
Costa Rica 0.2%
|
|
225
|
|
|
|
|
Republic of Costa Rica, Reg S
|
|
|
8.050%
|
|
|
|
1/31/13
|
|
|
|
BB+
|
|
|
|
246,375
|
|
|
310
|
|
|
|
|
Republic of Costa Rica, Reg S
|
|
|
6.548%
|
|
|
|
3/20/14
|
|
|
|
BB+
|
|
|
|
323,950
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Costa Rica
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
570,325
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
18
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Principal
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amount (000) (7)
|
|
|
|
|
Description (1)
|
|
Coupon
|
|
|
Maturity
|
|
|
Ratings (2)
|
|
|
Value
|
|
|
|
|
|
|
Cote dIvoire (Ivory Coast) 0.4%
|
$
|
134,000
|
|
|
NGN
|
|
African Development Bank, (8)
|
|
|
9.000%
|
|
|
|
5/17/10
|
|
|
|
AAA
|
|
|
$
|
1,140,220
|
|
|
|
|
|
|
|
Ecuador 0.2%
|
|
615
|
|
|
|
|
Republic of Ecuador, Reg S
|
|
|
10.000%
|
|
|
|
8/15/30
|
|
|
|
B
|
|
|
|
602,700
|
|
|
|
|
|
|
|
Egypt 0.6%
|
|
2,875
|
|
|
EGP
|
|
Egypt Republic, Treasury Bill
|
|
|
0.000%
|
|
|
|
9/30/08
|
|
|
|
BBB
|
|
|
|
525,310
|
|
|
1,750
|
|
|
EGP
|
|
Egypt Republic, Treasury Bill
|
|
|
0.000%
|
|
|
|
10/07/08
|
|
|
|
BBB
|
|
|
|
318,895
|
|
|
3,100
|
|
|
EGP
|
|
Egypt Republic, Treasury Bill, (8)
|
|
|
0.000%
|
|
|
|
10/21/08
|
|
|
|
BBB
|
|
|
|
563,507
|
|
|
700
|
|
|
EGP
|
|
Egypt Republic, Treasury Bill
|
|
|
0.000%
|
|
|
|
11/04/08
|
|
|
|
BBB
|
|
|
|
126,809
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Egypt
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,534,521
|
|
|
|
|
|
|
|
Gabon 1.3%
|
|
3,360
|
|
|
|
|
Republic of Gabon, 144A
|
|
|
8.200%
|
|
|
|
12/12/17
|
|
|
|
BB
|
|
|
|
3,511,200
|
|
|
|
|
|
|
|
Hungary 0.4%
|
|
180,800
|
|
|
HUF
|
|
Republic of Hungary, Treasury Bill
|
|
|
6.000%
|
|
|
|
10/24/12
|
|
|
|
BBB+
|
|
|
|
1,072,433
|
|
|
|
|
|
|
|
India 0.4%
|
|
1,205
|
|
|
|
|
Vedanta Resources PLC, 144A, WI/DD
|
|
|
9.500%
|
|
|
|
7/18/18
|
|
|
|
Ba1
|
|
|
|
1,205,000
|
|
|
|
|
|
|
|
Indonesia 2.1%
|
|
315
|
|
|
|
|
Excelcomindo Finance Company B.V., 144A
|
|
|
7.125%
|
|
|
|
1/18/13
|
|
|
|
Ba2
|
|
|
|
316,178
|
|
|
1,195
|
|
|
|
|
Majapahit Holdings B.V., 144A
|
|
|
7.250%
|
|
|
|
10/17/11
|
|
|
|
BB
|
|
|
|
1,196,494
|
|
|
875
|
|
|
|
|
Majapahit Holdings B.V., 144A
|
|
|
7.875%
|
|
|
|
6/29/37
|
|
|
|
BB
|
|
|
|
748,125
|
|
|
885
|
|
|
|
|
Majapahit Holdings B.V., Reg S
|
|
|
7.750%
|
|
|
|
10/17/16
|
|
|
|
BB
|
|
|
|
831,642
|
|
|
670
|
|
|
|
|
Republic of Indonesia, 144A, WI/DD, (8)
|
|
|
6.750%
|
|
|
|
3/10/14
|
|
|
|
BB
|
|
|
|
662,885
|
|
|
3,415,000
|
|
|
IDR
|
|
Republic of Indonesia
|
|
|
11.000%
|
|
|
|
11/15/20
|
|
|
|
BB+
|
|
|
|
314,826
|
|
|
2,000
|
|
|
|
|
Republic of Indonesia
|
|
|
7.750%
|
|
|
|
1/17/38
|
|
|
|
BB
|
|
|
|
1,890,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Indonesia
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
5,960,150
|
|
|
|
|
|
|
|
Israel 0.6%
|
|
1,115
|
|
|
|
|
Israel Electric Corporation Limited, 144A
|
|
|
7.250%
|
|
|
|
1/15/19
|
|
|
|
BBB+
|
|
|
|
1,140,235
|
|
|
585
|
|
|
|
|
State of Israel
|
|
|
5.500%
|
|
|
|
11/09/16
|
|
|
|
A1
|
|
|
|
600,589
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Israel
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,740,824
|
|
|
|
|
|
|
|
Kazakhstan 0.5%
|
|
1,085
|
|
|
|
|
KazMuniaGaz Finance Subsidiary, WI/DD
|
|
|
9.125%
|
|
|
|
7/02/18
|
|
|
|
Baa1
|
|
|
|
1,083,644
|
|
|
279
|
|
|
|
|
Tengizchevroil LLP, 144A
|
|
|
6.124%
|
|
|
|
11/15/14
|
|
|
|
BBB
|
|
|
|
269,537
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Kazakhstan
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,353,181
|
|
|
|
|
|
|
|
Luxembourg 0.3%
|
|
455
|
|
|
|
|
Evraz Group S.A., 144A
|
|
|
8.875%
|
|
|
|
4/24/13
|
|
|
|
BB
|
|
|
|
457,821
|
|
|
455
|
|
|
|
|
Evraz Group S.A., 144A
|
|
|
9.500%
|
|
|
|
4/24/18
|
|
|
|
BB
|
|
|
|
458,413
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Luxembourg
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
916,234
|
|
|
|
|
|
|
|
Malaysia 1.6%
|
|
950
|
|
|
|
|
Penerbangan Malaysia Berhad, Reg S
|
|
|
5.625%
|
|
|
|
3/15/16
|
|
|
|
A
|
|
|
|
979,307
|
|
|
525
|
|
|
|
|
Pertoliam Nasional Berhad, Reg S
|
|
|
7.625%
|
|
|
|
10/15/26
|
|
|
|
A
|
|
|
|
629,098
|
|
|
1,125
|
|
|
|
|
Petronas Capital Limited, Reg S
|
|
|
7.000%
|
|
|
|
5/22/12
|
|
|
|
A1
|
|
|
|
1,210,698
|
|
|
1,100
|
|
|
|
|
Republic of Malaysia
|
|
|
8.750%
|
|
|
|
6/01/09
|
|
|
|
A
|
|
|
|
1,147,286
|
|
|
550
|
|
|
|
|
Sarawak International Inc.
|
|
|
5.500%
|
|
|
|
8/03/15
|
|
|
|
A
|
|
|
|
520,501
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Malaysia
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4,486,890
|
|
|
|
|
|
|
|
Mexico 3.5%
|
|
895
|
|
|
|
|
Conproca S.A., Reg S
|
|
|
12.000%
|
|
|
|
6/16/10
|
|
|
|
BBB
|
|
|
|
1,006,875
|
|
|
6,125
|
|
|
MXN
|
|
Mexico Bonos de DeSarrollo
|
|
|
7.750%
|
|
|
|
12/14/17
|
|
|
|
A+
|
|
|
|
539,563
|
|
|
1,925
|
|
|
|
|
Pemex Project Funding Master Trust, 144A, Reg S
|
|
|
4.076%
|
|
|
|
6/15/10
|
|
|
|
BBB+
|
|
|
|
1,935,106
|
|
|
2,450
|
|
|
|
|
Pemex Project Funding Master Trust, 144A
|
|
|
5.750%
|
|
|
|
3/01/18
|
|
|
|
BBB+
|
|
|
|
2,431,625
|
|
|
6,575
|
|
|
MXN
|
|
United Mexican States
|
|
|
8.000%
|
|
|
|
12/19/13
|
|
|
|
A+
|
|
|
|
611,655
|
|
|
1,175
|
|
|
|
|
United Mexican States
|
|
|
6.750%
|
|
|
|
9/27/34
|
|
|
|
BBB+
|
|
|
|
1,249,613
|
|
|
1,922
|
|
|
|
|
United Mexican States
|
|
|
6.050%
|
|
|
|
1/11/40
|
|
|
|
BBB+
|
|
|
|
1,857,613
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Mexico
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
9,632,050
|
|
|
|
|
|
|
|
Morocco 0.4%
|
|
815
|
|
|
EUR
|
|
Kingdom of Morocco, Reg S
|
|
|
5.375%
|
|
|
|
6/27/17
|
|
|
|
BBB
|
|
|
|
1,177,036
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
19
|
|
|
|
|
|
JDD
|
|
Nuveen Diversified Dividend and
Income Fund (continued)
Portfolio of
INVESTMENTS June 30,
2008 (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Principal
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amount (000) (7)
|
|
|
|
|
Description (1)
|
|
Coupon
|
|
|
Maturity
|
|
|
Ratings (2)
|
|
|
Value
|
|
|
|
|
|
|
Netherlands 0.2%
|
$
|
700
|
|
|
|
|
Intergas Finance B.V., Reg S
|
|
|
6.375%
|
|
|
|
5/14/17
|
|
|
|
Baa1
|
|
|
$
|
627,375
|
|
|
|
|
|
|
|
Panama 0.8%
|
|
625
|
|
|
|
|
Republic of Panama
|
|
|
7.250%
|
|
|
|
3/15/15
|
|
|
|
BB+
|
|
|
|
675,000
|
|
|
1,079
|
|
|
|
|
Republic of Panama
|
|
|
9.375%
|
|
|
|
4/01/29
|
|
|
|
BB+
|
|
|
|
1,416,188
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Panama
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,091,188
|
|
|
|
|
|
|
|
Peru 3.9%
|
|
470
|
|
|
PEN
|
|
Republic of Peru, (8)
|
|
|
8.610%
|
|
|
|
3/10/10
|
|
|
|
BBB
|
|
|
|
165,222
|
|
|
1,100
|
|
|
|
|
Republic of Peru
|
|
|
9.125%
|
|
|
|
2/21/12
|
|
|
|
BB+
|
|
|
|
1,248,500
|
|
|
2,430
|
|
|
|
|
Republic of Peru
|
|
|
9.875%
|
|
|
|
2/06/15
|
|
|
|
BB+
|
|
|
|
2,985,255
|
|
|
2,285
|
|
|
|
|
Republic of Peru
|
|
|
8.375%
|
|
|
|
5/03/16
|
|
|
|
BB+
|
|
|
|
2,659,740
|
|
|
615
|
|
|
|
|
Republic of Peru
|
|
|
8.750%
|
|
|
|
11/21/33
|
|
|
|
BB+
|
|
|
|
793,350
|
|
|
630
|
|
|
|
|
Republic of Peru
|
|
|
6.550%
|
|
|
|
3/14/37
|
|
|
|
BB+
|
|
|
|
639,450
|
|
|
1,200
|
|
|
PEN
|
|
Republic of Peru, Certificates of Deposit
|
|
|
0.000%
|
|
|
|
7/03/08
|
|
|
|
BBB
|
|
|
|
405,160
|
|
|
2,800
|
|
|
PEN
|
|
Republic of Peru, Certificates of Deposit
|
|
|
0.000%
|
|
|
|
1/05/09
|
|
|
|
BBB
|
|
|
|
924,407
|
|
|
1,462
|
|
|
|
|
Republic of Peru, Enhanced Pass Thru Notes 144A, (8)
|
|
|
0.000%
|
|
|
|
5/31/18
|
|
|
|
BB
|
|
|
|
992,220
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Peru
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10,813,304
|
|
|
|
|
|
|
|
Philippines 0.2%
|
|
255
|
|
|
|
|
Bangko Sentral ng Pilippinas, Series A
|
|
|
8.600%
|
|
|
|
6/15/27
|
|
|
|
BB
|
|
|
|
285,600
|
|
|
220
|
|
|
|
|
National Power Corporation, Reg S
|
|
|
6.888%
|
|
|
|
8/23/11
|
|
|
|
BB
|
|
|
|
232,962
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Philippines
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
518,562
|
|
|
|
|
|
|
|
Qatar 0.4%
|
|
147
|
|
|
|
|
Ras Laffan Liquefied Natural Gas Co., Ltd., 144A
|
|
|
3.437%
|
|
|
|
9/15/09
|
|
|
|
A
|
|
|
|
147,297
|
|
|
308
|
|
|
|
|
Ras Laffan Liquefied Natural Gas Company Limited, Reg S
|
|
|
3.437%
|
|
|
|
9/15/09
|
|
|
|
A
|
|
|
|
308,378
|
|
|
575
|
|
|
|
|
Ras Laffan Liquefied Natural Gas II, Reg S
|
|
|
5.298%
|
|
|
|
9/30/20
|
|
|
|
A
|
|
|
|
537,970
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Qatar
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
993,645
|
|
|
|
|
|
|
|
Russian Federation 4.0%
|
|
170
|
|
|
EUR
|
|
Gaz Capital S.A., 144A
|
|
|
5.030%
|
|
|
|
2/25/14
|
|
|
|
A3
|
|
|
|
232,139
|
|
|
640
|
|
|
|
|
Gaz Capital S.A., 144A
|
|
|
6.212%
|
|
|
|
11/22/16
|
|
|
|
A3
|
|
|
|
599,552
|
|
|
765
|
|
|
|
|
Gazprom Capital S.A., 144A
|
|
|
7.343%
|
|
|
|
4/11/13
|
|
|
|
A3
|
|
|
|
786,038
|
|
|
765
|
|
|
|
|
Gazprom Capital S.A., 144A
|
|
|
8.146%
|
|
|
|
4/11/18
|
|
|
|
A3
|
|
|
|
794,644
|
|
|
586
|
|
|
|
|
GazStream S.A., 144A
|
|
|
5.625%
|
|
|
|
7/22/13
|
|
|
|
A3
|
|
|
|
575,858
|
|
|
620
|
|
|
|
|
Irkut Corporation, Loan Participations, Moscow River B.V., Reg S
|
|
|
8.250%
|
|
|
|
4/10/09
|
|
|
|
N/R
|
|
|
|
616,280
|
|
|
3,595
|
|
|
|
|
Russia Federation, Reg S
|
|
|
7.500%
|
|
|
|
3/31/30
|
|
|
|
BBB+
|
|
|
|
4,039,271
|
|
|
630
|
|
|
|
|
Russian Agricultural Bank, 144A
|
|
|
7.750%
|
|
|
|
5/29/18
|
|
|
|
A3
|
|
|
|
620,550
|
|
|
650
|
|
|
|
|
Russian Ministry of Finance, Reg S
|
|
|
12.750%
|
|
|
|
6/24/28
|
|
|
|
BBB+
|
|
|
|
1,159,542
|
|
|
550
|
|
|
|
|
Saving Bank of the Russian Federation, Participations
|
|
|
6.230%
|
|
|
|
2/11/15
|
|
|
|
A2
|
|
|
|
543,510
|
|
|
490
|
|
|
|
|
VTB Capital S.A., 144A
|
|
|
3.384%
|
|
|
|
8/01/08
|
|
|
|
A2
|
|
|
|
485,713
|
|
|
850
|
|
|
|
|
VTB Capital S.A., 144A
|
|
|
6.875%
|
|
|
|
5/29/18
|
|
|
|
A2
|
|
|
|
833,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Russian Federation
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
11,286,097
|
|
|
|
|
|
|
|
Serbia 0.8%
|
|
2,500
|
|
|
|
|
Republic of Serbia, 144A
|
|
|
3.750%
|
|
|
|
11/01/24
|
|
|
|
BB
|
|
|
|
2,293,750
|
|
|
|
|
|
|
|
South Africa 0.9%
|
|
1,140
|
|
|
|
|
Republic of South Africa
|
|
|
7.375%
|
|
|
|
4/25/12
|
|
|
|
BBB+
|
|
|
|
1,205,550
|
|
|
1,425
|
|
|
|
|
Republic of South Africa
|
|
|
5.875%
|
|
|
|
5/30/22
|
|
|
|
BBB+
|
|
|
|
1,321,688
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total South Africa
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,527,238
|
|
|
|
|
|
|
|
Thailand 0.1%
|
|
250
|
|
|
|
|
Bangkok Bank Public Company Limited, Reg S
|
|
|
9.025%
|
|
|
|
3/15/29
|
|
|
|
BBB
|
|
|
|
268,841
|
|
|
|
|
|
|
|
Trinidad and Tobago 1.7%
|
|
945
|
|
|
|
|
First Citizens Saint Lucia Limited, Reg S
|
|
|
5.125%
|
|
|
|
2/14/11
|
|
|
|
A1
|
|
|
|
949,382
|
|
|
180
|
|
|
|
|
National Gas Company of Trinidad and Tobago, 144A
|
|
|
6.050%
|
|
|
|
1/15/36
|
|
|
|
A3
|
|
|
|
165,166
|
|
|
1,325
|
|
|
|
|
Petroleum Company of Trinidad & Tobago Limited, 144A
|
|
|
6.000%
|
|
|
|
5/08/22
|
|
|
|
BBB+
|
|
|
|
1,268,688
|
|
|
963
|
|
|
|
|
Republic of Trinidad and Tobago, Reg S
|
|
|
9.750%
|
|
|
|
7/01/20
|
|
|
|
A
|
|
|
|
1,256,715
|
|
|
1,275
|
|
|
|
|
Republic of Trinidad and Tobago, Reg S
|
|
|
5.875%
|
|
|
|
5/17/27
|
|
|
|
A
|
|
|
|
1,230,375
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Trinidad and Tobago
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4,870,326
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
20
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Principal
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amount (000) (7)
|
|
|
|
|
Description (1)
|
|
Coupon
|
|
|
Maturity
|
|
|
Ratings (2)
|
|
|
Value
|
|
|
|
|
|
|
Tunisia 1.2%
|
$
|
3,215
|
|
|
|
|
Banque de Tunisie
|
|
|
7.375%
|
|
|
|
4/25/12
|
|
|
|
BBB
|
|
|
$
|
3,415,938
|
|
|
|
|
|
|
|
Ukraine 0.9%
|
|
2,635
|
|
|
|
|
Republic of Ukraine, Reg S
|
|
|
6.875%
|
|
|
|
3/04/11
|
|
|
|
B+
|
|
|
|
2,612,339
|
|
|
|
|
|
|
|
United Arab Emirates 0.5%
|
|
1,450
|
|
|
|
|
DP World Limited, Reg S
|
|
|
6.850%
|
|
|
|
7/02/37
|
|
|
|
A+
|
|
|
|
1,260,920
|
|
|
|
|
|
|
|
Uruguay 3.1%
|
|
5,525
|
|
|
|
|
Oriental Republic of Uruguay
|
|
|
7.625%
|
|
|
|
3/21/36
|
|
|
|
BB
|
|
|
|
5,685,225
|
|
|
125
|
|
|
|
|
Republic of Uruguay
|
|
|
7.500%
|
|
|
|
3/15/15
|
|
|
|
BB
|
|
|
|
137,500
|
|
|
1,560
|
|
|
|
|
Republic of Uruguay
|
|
|
9.250%
|
|
|
|
5/17/17
|
|
|
|
BB
|
|
|
|
1,903,200
|
|
|
5,720
|
|
|
UYU
|
|
Republic of Uruguay
|
|
|
5.000%
|
|
|
|
9/14/18
|
|
|
|
B+
|
|
|
|
379,473
|
|
|
315
|
|
|
|
|
Republic of Uruguay
|
|
|
8.000%
|
|
|
|
11/18/22
|
|
|
|
BB
|
|
|
|
337,838
|
|
|
117
|
|
|
|
|
Republic of Uruguay
|
|
|
7.875%
|
|
|
|
1/15/33
|
|
|
|
BB
|
|
|
|
123,766
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Uruguay
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
8,567,002
|
|
|
|
|
|
|
|
Venezuela 1.0%
|
|
635
|
|
|
|
|
Republic of Venezuela, Reg S
|
|
|
7.000%
|
|
|
|
12/01/18
|
|
|
|
BB
|
|
|
|
512,763
|
|
|
815
|
|
|
|
|
Republic of Venezuela, Reg S
|
|
|
3.908%
|
|
|
|
4/20/11
|
|
|
|
BB
|
|
|
|
732,481
|
|
|
125
|
|
|
|
|
Republic of Venezuela
|
|
|
8.500%
|
|
|
|
10/08/14
|
|
|
|
BB
|
|
|
|
118,125
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,425
|
|
|
|
|
Republic of Venezuela
|
|
|
9.250%
|
|
|
|
9/15/27
|
|
|
|
BB
|
|
|
|
1,340,918
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Venezuela
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,704,287
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Virgin Islands (UK) 0.2%
|
|
615
|
|
|
|
|
GTL Trade Finance Inc., 144A
|
|
|
7.250%
|
|
|
|
10/20/17
|
|
|
|
BBB
|
|
|
|
618,906
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Emerging Markets Debt and Foreign Corporate
Bonds (cost $118,862,321)
|
|
|
|
|
|
|
|
|
|
|
118,410,092
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Principal
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amount (000)
|
|
|
|
|
Description (1)
|
|
Coupon
|
|
|
Maturity
|
|
|
Ratings
|
|
|
Value
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Short-Term Investments 7.9% (5.0% of Total
Investments)
|
|
|
|
|
|
|
Sovereign Debt 0.2%
|
|
3,550
|
|
|
EGP
|
|
Egypt Republic, Treasury Bill
|
|
|
0.000%
|
|
|
|
7/29/08
|
|
|
|
BBB
|
|
|
$
|
662,717
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Repurchase Agreements 7.7%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
21,434
|
|
|
|
|
Repurchase Agreement with Fixed Income Clearing Corporation,
dated 6/30/08, repurchase price $21,435,008, collateralized by
$22,075,000 U.S. Treasury Bills, 0.000%, due 12/11/08, value
$21,865,288
|
|
|
1.350%
|
|
|
|
7/01/08
|
|
|
|
N/A
|
|
|
|
21,434,204
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Short-Term Investments (cost $22,079,257)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
22,096,921
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Investments (cost $455,425,842) 159.7%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
445,664,462
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Borrowings (16.1)% (9)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(45,000,000
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Assets Less Liabilities (0.6)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1,641,373
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FundPreferred Shares, at Liquidation Value
(43.0)% (9)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(120,000,000
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Assets Applicable to Common Shares 100%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
279,023,089
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
21
|
|
|
|
|
|
JDD
|
|
Nuveen Diversified Dividend and
Income Fund (continued)
Portfolio of
INVESTMENTS June 30,
2008 (Unaudited)
|
Forward Foreign Currency Exchange Contracts outstanding at
June 30, 2008:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized
|
|
|
|
|
|
|
|
|
|
|
|
|
Appreciation
|
|
|
Amount
|
|
|
In Exchange For
|
|
Amount
|
|
|
Settlement
|
|
(Depreciation)
|
Currency Contracts to Deliver
|
|
(Local Currency)
|
|
|
Currency
|
|
(Local Currency)
|
|
|
Date
|
|
(U.S. Dollars)
|
Brazilian Real
|
|
|
6,185,000
|
|
|
|
U.S. Dollar
|
|
|
3,681,548
|
|
|
|
9/17/08
|
|
$
|
(101,308
|
)
|
Colombian Peso
|
|
|
1,295,187,000
|
|
|
|
U.S. Dollar
|
|
|
776,957
|
|
|
|
7/18/08
|
|
|
103,481
|
|
Colombian Peso
|
|
|
904,200,000
|
|
|
|
U.S. Dollar
|
|
|
520,553
|
|
|
|
7/18/08
|
|
|
50,384
|
|
Euro
|
|
|
279,000
|
|
|
|
U.S. Dollar
|
|
|
429,618
|
|
|
|
9/17/08
|
|
|
(7,903
|
)
|
Euro
|
|
|
316,000
|
|
|
|
U.S. Dollar
|
|
|
486,179
|
|
|
|
9/17/08
|
|
|
(9,366
|
)
|
Euro
|
|
|
316,000
|
|
|
|
U.S. Dollar
|
|
|
486,403
|
|
|
|
9/17/08
|
|
|
(9,141
|
)
|
Euro
|
|
|
331,000
|
|
|
|
U.S. Dollar
|
|
|
509,012
|
|
|
|
9/17/08
|
|
|
(10,055
|
)
|
Euro
|
|
|
284,000
|
|
|
|
U.S. Dollar
|
|
|
436,906
|
|
|
|
9/17/08
|
|
|
(8,457
|
)
|
Euro
|
|
|
331,000
|
|
|
|
U.S. Dollar
|
|
|
509,144
|
|
|
|
9/17/08
|
|
|
(9,923
|
)
|
Hungarian Forint
|
|
|
164,073,000
|
|
|
|
U.S. Dollar
|
|
|
1,005,103
|
|
|
|
9/17/08
|
|
|
(78,961
|
)
|
U.S. Dollar
|
|
|
1,251,726
|
|
|
|
Malaysian Ringgit
|
|
|
4,080,000
|
|
|
|
9/17/08
|
|
|
(2,642
|
)
|
U.S. Dollar
|
|
|
245,410
|
|
|
|
Malaysian Ringgit
|
|
|
802,000
|
|
|
|
9/17/08
|
|
|
120
|
|
U.S. Dollar
|
|
|
245,861
|
|
|
|
Malaysian Ringgit
|
|
|
802,000
|
|
|
|
9/17/08
|
|
|
(331
|
)
|
U.S. Dollar
|
|
|
737,132
|
|
|
|
Malaysian Ringgit
|
|
|
2,406,000
|
|
|
|
9/17/08
|
|
|
(540
|
)
|
U.S. Dollar
|
|
|
622,571
|
|
|
|
Nigerian Naira
|
|
|
74,086,000
|
|
|
|
9/19/08
|
|
|
(10,543
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
(95,185
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
All percentages shown in the Portfolio of Investments are based
on net assets applicable to Common shares unless otherwise noted.
|
(2)
|
|
Ratings: Using the higher of Standard & Poors Group
(Standard & Poors) or Moodys
Investor Service, Inc. (Moodys) rating.
Ratings below BBB by Standard & Poors or Baa by
Moodys are considered to be below investment grade.
|
(3)
|
|
Senior Loans generally are subject to mandatory
and/or
optional prepayment. Because of these mandatory prepayment
conditions and because there may be significant economic
incentives for a Borrower to prepay, prepayments of Senior Loans
may occur. As a result, the actual remaining maturity of Senior
Loans held may be substantially less than the stated maturities
shown.
|
(4)
|
|
Senior Loans generally pay interest at rates which are
periodically adjusted by reference to a base short-term,
floating lending rate plus an assigned fixed rate. These
floating lending rates are generally (i) the lending rate
referenced by the London Inter-Bank Offered Rate
(LIBOR), or (ii) the prime rate offered by one or
more major United States banks.
|
|
|
Senior Loans may be considered restricted in that the Fund
ordinarily is contractually obligated to receive approval from
the Agent Bank
and/or
Borrower prior to the disposition of a Senior Loan.
|
(5)
|
|
Position or portion of position represents an unfunded Senior
Loan commitment outstanding at June 30, 2008.
|
(6)
|
|
Negative value represents unrealized depreciation on unfunded
Senior Loan commitment outstanding at June 30, 2008.
|
(7)
|
|
Principal Amount denominated in U.S. Dollars, unless otherwise
noted.
|
(8)
|
|
Investment valued at fair value using methods determined in good
faith by, or at the discretion of, the Board of Trustees.
|
(9)
|
|
Borrowings and FundPreferred Shares, at Liquidation Value as a
percentage of total investments are (10.1)% and (26.9)%,
respectively.
|
N/A
|
|
Not available.
|
N/R
|
|
Not rated.
|
144A
|
|
Investment is exempt from registration under Rule 144A of the
Securities Act of 1933, as amended. These investments may only
be resold in transactions exempt from registration which are
normally those transactions with qualified institutional buyers.
|
ADR
|
|
American Depositary Receipt.
|
Reg S
|
|
Regulation S allows U.S. companies to sell securities to persons
or entities located outside of the United States without
registering those securities with the Securities and Exchange
Commission. Specifically, Regulation S provides a safe harbor
from the registration requirements of the Securities Act for the
offers and sales of securities by both foreign and domestic
issuers that are made outside the United States.
|
WI/DD
|
|
Purchased on a when-issued or delayed delivery basis.
|
ARS
|
|
Argentine Peso
|
BRL
|
|
Brazilian Real
|
COP
|
|
Colombian Peso
|
EGP
|
|
Egyptian Pound
|
EUR
|
|
Euro
|
HUF
|
|
Hungarian Forint
|
IDR
|
|
Indonesian Rupiah
|
MXN
|
|
Mexican Peso
|
NGN
|
|
Nigerian Naira
|
PEN
|
|
Peruvian New Sol
|
UYU
|
|
Uruguayan Peso
|
See accompanying notes to
financial statements.
22
|
|
|
|
|
|
|
|
Statement of
ASSETS &
LIABILITIES
June 30,
2008 (Unaudited)
|
|
|
|
|
|
Assets
|
|
|
|
|
Investments, at value (cost $455,425,842)
|
|
$
|
445,664,462
|
|
Cash denominated in foreign currencies (cost $509,956)
|
|
|
523,399
|
|
Unrealized appreciation on forward foreign currency exchange
contracts
|
|
|
153,985
|
|
Receivables:
|
|
|
|
|
Dividends
|
|
|
896,152
|
|
Interest
|
|
|
2,761,558
|
|
Investments sold
|
|
|
17,240,540
|
|
Reclaims
|
|
|
30,980
|
|
Other assets
|
|
|
54,607
|
|
|
|
|
|
|
Total assets
|
|
|
467,325,683
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
Borrowings
|
|
|
45,000,000
|
|
Unrealized depreciation on forward foreign currency exchange
contracts
|
|
|
249,170
|
|
Payable for investments purchased
|
|
|
15,369,250
|
|
Accrued expenses:
|
|
|
|
|
Management fees
|
|
|
214,784
|
|
Interest on borrowings
|
|
|
146,458
|
|
Other
|
|
|
157,879
|
|
Common share dividends payable
|
|
|
7,106,733
|
|
FundPreferred share dividends payable
|
|
|
58,320
|
|
|
|
|
|
|
Total liabilities
|
|
|
68,302,594
|
|
|
|
|
|
|
FundPreferred shares, at liquidation value
|
|
|
120,000,000
|
|
|
|
|
|
|
Net assets applicable to Common shares
|
|
$
|
279,023,089
|
|
|
|
|
|
|
Common shares outstanding
|
|
|
20,202,819
|
|
|
|
|
|
|
Net asset value per Common share outstanding (net assets
applicable to
Common shares, divided by Common shares outstanding)
|
|
$
|
13.81
|
|
|
|
|
|
|
|
|
|
|
|
Net assets applicable to Common shares consist of:
|
|
|
|
|
|
|
|
|
|
Common shares, $.01 par value per share
|
|
$
|
202,028
|
|
Paid-in surplus
|
|
|
304,726,261
|
|
Undistributed (Over-distribution of) net investment income
|
|
|
(9,197,704
|
)
|
Accumulated net realized gain (loss) from investments and
derivative transactions
|
|
|
(6,874,636
|
)
|
Net unrealized appreciation (depreciation) of investments and
derivative transactions
|
|
|
(9,832,860
|
)
|
|
|
|
|
|
Net assets applicable to Common shares
|
|
$
|
279,023,089
|
|
|
|
|
|
|
Authorized shares:
|
|
|
|
|
Common
|
|
|
Unlimited
|
|
FundPreferred
|
|
|
Unlimited
|
|
|
|
|
|
|
See accompanying notes to
financial statements.
23
|
|
|
|
|
|
|
|
Statement of
OPERATIONS
Six
Months Ended June 30, 2008 (Unaudited)
|
|
|
|
|
|
Investment Income
|
|
|
|
|
Dividends (net of foreign tax withheld of $105,701)
|
|
$
|
3,843,583
|
|
Interest (net of foreign tax withheld of $6,839)
|
|
|
8,016,520
|
|
|
|
|
|
|
Total investment income
|
|
|
11,860,103
|
|
|
|
|
|
|
Expenses
|
|
|
|
|
Management fees
|
|
|
2,078,293
|
|
FundPreferred shares auction fees
|
|
|
149,180
|
|
FundPreferred shares dividend disbursing agent fees
|
|
|
6,710
|
|
Shareholders servicing agent fees and expenses
|
|
|
772
|
|
Interest expense on borrowings
|
|
|
806,151
|
|
Fees on borrowings
|
|
|
73,263
|
|
Custodians fees and expenses
|
|
|
113,486
|
|
Trustees fees and expenses
|
|
|
4,100
|
|
Professional fees
|
|
|
11,506
|
|
Shareholders reports printing and mailing
expenses
|
|
|
59,613
|
|
Stock exchange listing fees
|
|
|
4,659
|
|
Investor relations expense
|
|
|
38,913
|
|
Other expenses
|
|
|
11,119
|
|
|
|
|
|
|
Total expenses before custodian fee credit and expense
reimbursement
|
|
|
3,357,765
|
|
Custodian fee credit
|
|
|
(1,778
|
)
|
Expense reimbursement
|
|
|
(750,919
|
)
|
|
|
|
|
|
Net expenses
|
|
|
2,605,068
|
|
|
|
|
|
|
Net investment income
|
|
|
9,255,035
|
|
|
|
|
|
|
Realized and Unrealized Gain (Loss)
|
|
|
|
|
Net realized gain (loss) from:
|
|
|
|
|
Investments
|
|
|
(7,464,108
|
)
|
Forwards
|
|
|
(573,025
|
)
|
Foreign currencies
|
|
|
41,546
|
|
Change in net unrealized appreciation (depreciation) of:
|
|
|
|
|
Investments
|
|
|
(30,003,226
|
)
|
Forwards
|
|
|
(129,812
|
)
|
Foreign currencies
|
|
|
8,388
|
|
|
|
|
|
|
Net realized and unrealized gain (loss)
|
|
|
(38,120,237
|
)
|
|
|
|
|
|
Distributions to FundPreferred Shareholders
|
|
|
|
|
From and in excess of net investment income
|
|
|
(2,258,620
|
)
|
|
|
|
|
|
Decrease in net assets applicable to Common shares from
distributions to FundPreferred shareholders
|
|
|
(2,258,620
|
)
|
|
|
|
|
|
Net increase (decrease) in net assets applicable to Common
shares from operations
|
|
$
|
(31,123,822
|
)
|
|
|
|
|
|
See accompanying notes to
financial statements.
24
|
|
|
|
|
|
|
|
Statement of
CHANGES in NET ASSETS
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Six Months
|
|
|
|
|
|
Ended
|
|
|
Year Ended
|
|
|
6/30/08
|
|
|
12/31/07
|
Operations
|
|
|
|
|
|
|
|
|
Net investment income
|
|
$
|
9,255,035
|
|
|
$
|
20,554,871
|
|
Net realized gain (loss) from:
|
|
|
|
|
|
|
|
|
Investments (net of federal corporate income taxes of $0 and
$5,100,000, respectively,
on long-term capital gains retained)
|
|
|
(7,464,108
|
)
|
|
|
28,858,921
|
|
Forwards
|
|
|
(573,025
|
)
|
|
|
(829,700
|
)
|
Foreign currencies
|
|
|
41,546
|
|
|
|
(158,020
|
)
|
Change in net unrealized appreciation (depreciation) of:
|
|
|
|
|
|
|
|
|
Investments
|
|
|
(30,003,226
|
)
|
|
|
(74,388,652
|
)
|
Forwards
|
|
|
(129,812
|
)
|
|
|
17,375
|
|
Foreign currencies
|
|
|
8,388
|
|
|
|
14,140
|
|
Distributions to FundPreferred shareholders:
|
|
|
|
|
|
|
|
|
From and in excess of net investment income
|
|
|
(2,258,620
|
)
|
|
|
|
|
From net investment income
|
|
|
|
|
|
|
(2,389,597
|
)
|
From accumulated net realized gains
|
|
|
|
|
|
|
(3,757,509
|
)
|
|
|
|
|
|
|
|
|
|
Net increase (decrease) in net assets applicable to Common
shares from operations
|
|
|
(31,123,822
|
)
|
|
|
(32,078,171
|
)
|
|
|
|
|
|
|
|
|
|
Distributions to Common Shareholders
|
From and in excess of net investment income
|
|
|
(14,950,086
|
)
|
|
|
|
|
From net investment income
|
|
|
|
|
|
|
(18,143,336
|
)
|
From accumulated net realized gains
|
|
|
|
|
|
|
(12,928,107
|
)
|
|
|
|
|
|
|
|
|
|
Decrease in net assets applicable to Common shares from
distributions to Common shareholders
|
|
|
(14,950,086
|
)
|
|
|
(31,071,443
|
)
|
|
|
|
|
|
|
|
|
|
Capital Share Transactions
|
|
|
|
|
|
|
|
|
Net proceeds from Common shares issued to shareholders due to
reinvestment of distributions
|
|
|
|
|
|
|
815,056
|
|
|
|
|
|
|
|
|
|
|
Net increase (decrease) in net assets applicable to Common
shares from capital share transactions
|
|
|
|
|
|
|
815,056
|
|
|
|
|
|
|
|
|
|
|
Net increase (decrease) in net assets applicable to Common
shares
|
|
|
(46,073,908
|
)
|
|
|
(62,334,558
|
)
|
Net assets applicable to Common shares at the beginning of period
|
|
|
325,096,997
|
|
|
|
387,431,555
|
|
|
|
|
|
|
|
|
|
|
Net assets applicable to Common shares at the end of period
|
|
$
|
279,023,089
|
|
|
$
|
325,096,997
|
|
|
|
|
|
|
|
|
|
|
Undistributed (Over-distribution of) net investment income at
the end of period
|
|
$
|
(9,197,704
|
)
|
|
$
|
(1,244,033
|
)
|
|
|
|
|
|
|
|
|
|
See accompanying notes to
financial statements.
25
|
|
|
|
|
|
|
|
Statement of
CASH FLOWS
Six
months ended June 30, 2008 (Unaudited)
|
|
|
|
|
|
Cash Flows From Operating Activities:
|
|
|
|
|
Net Increase (Decrease) in Net Assets Applicable to Common
Shares from Operations
|
|
$
|
(31,123,822
|
)
|
Adjustments to reconcile the net increase (decrease) in net
assets applicable to Common shares from operations
to net cash provided by (used in) operating activities:
|
|
|
|
|
Purchases of investments
|
|
|
(120,689,526
|
)
|
Proceeds from the sales and maturities of investments
|
|
|
131,090,486
|
|
Proceeds from (Purchases of) short-term investments, net
|
|
|
(4,349,994
|
)
|
Amortization (Accretion) of premiums and discounts, net
|
|
|
92,608
|
|
(Increase) Decrease in receivable for dividends
|
|
|
471,926
|
|
(Increase) Decrease in receivable for interest
|
|
|
324,703
|
|
(Increase) Decrease in receivable for investments sold
|
|
|
(17,090,382
|
)
|
(Increase) Decrease in receivable for reclaims
|
|
|
10,597
|
|
(Increase) Decrease in other assets
|
|
|
(22,692
|
)
|
Increase (Decrease) in interest on borrowings
|
|
|
(8,483
|
)
|
Increase (Decrease) in payable for investments purchased
|
|
|
14,880,215
|
|
Increase (Decrease) in payable for federal corporate income tax
|
|
|
(5,100,000
|
)
|
Increase (Decrease) in accrued management fees
|
|
|
(25,696
|
)
|
Increase (Decrease) in accrued other liabilities
|
|
|
(10,461
|
)
|
Increase (Decrease) in FundPreferred share dividends payable
|
|
|
(37,532
|
)
|
Net realized (gain) loss from investments
|
|
|
7,464,108
|
|
Net realized (gain) loss from forwards
|
|
|
573,025
|
|
Net realized (gain) loss from foreign currencies
|
|
|
(41,546
|
)
|
Net realized (gain) loss from paydowns
|
|
|
(159,259
|
)
|
Change in net unrealized (appreciation) depreciation of
investments
|
|
|
30,003,226
|
|
Change in net unrealized (appreciation) depreciation of forwards
|
|
|
129,812
|
|
Change in net unrealized (appreciation) depreciation of foreign
currencies
|
|
|
(8,388
|
)
|
Capital gains and return of capital distributions from
investments
|
|
|
1,470,428
|
|
|
|
|
|
|
Net cash provided by (used in) operating activities
|
|
|
7,843,353
|
|
|
|
|
|
|
Cash Flows from Financing Activities:
|
|
|
|
|
Cash distributions paid to Common shareholders
|
|
|
(7,843,353
|
)
|
|
|
|
|
|
Net cash provided by (used in) financing activities
|
|
|
(7,843,353
|
)
|
|
|
|
|
|
Net Increase (Decrease) in Cash
|
|
|
|
|
Cash at the beginning of period
|
|
|
|
|
|
|
|
|
|
Cash at the End of Period
|
|
$
|
|
|
|
|
|
|
|
Supplemental
Disclosure of Cash Flow Information
Cash paid for interest on borrowings during the six months ended
June 30, 2008, was $882,960.
Cash paid for federal corporate income taxes during the six
months ended June 30, 2008, was $5,100,000.
See accompanying notes to
financial statements.
1
|
|
|
|
|
|
|
|
Notes to
FINANCIAL
STATEMENTS (Unaudited)
|
|
|
1.
|
General
Information and Significant Accounting Policies
|
Nuveen Diversified Dividend and Income Fund (the
Fund) is a diversified, closed-end management
investment company registered under the Investment Company Act
of 1940, as amended. The Funds Common shares are listed on
the New York Stock Exchange and trade under the ticker symbol
JDD. The Fund was organized as a Massachusetts
business trust on July 18, 2003.
The Fund seeks to provide high current income and total return
by investing primarily in a portfolio of dividend-paying common
stocks, securities issued by Real Estate Investment Trusts
(REITs), debt securities and other non-equity
instruments that are issued by, or that are related to,
government, government-related and supernational issuers
located, or conducting their business, in emerging market
countries (emerging markets debt and foreign corporate
bonds) and senior loans.
The following is a summary of significant accounting policies
followed by the Fund in the preparation of its financial
statements in accordance with U.S. generally accepted accounting
principles.
Investment
Valuation
Exchange-listed securities are generally valued at the last
sales price on the securities exchange on which such securities
are primarily traded. Securities traded on a securities exchange
for which there are no transactions on a given day or securities
not listed on a securities exchange are valued at the mean of
the closing bid and asked prices. Securities traded on Nasdaq
are valued at the Nasdaq Official Closing Price. The prices of
fixed-income securities, senior loans and derivative instruments
are generally provided by an independent pricing service
approved by the Funds Board of Trustees. When price quotes
are not readily available, the pricing service or, in the
absence of a pricing service for a particular investment, the
Board of Trustees of the Fund, or its designee, may establish
fair value using a wide variety of market data including yields
or prices of investments of comparable quality, type of issue,
coupon, maturity and rating, market quotes or indications of
value from security dealers, evaluations of anticipated cash
flows or collateral, general market conditions and other
information and analysis, including the obligors credit
characteristics considered relevant by the pricing service or
the Board of Trustees designee. If the pricing service is
unable to supply a price for an investment or derivative
instrument the Fund may use market quotes provided by major
broker/dealers in such investments. If it is determined that the
market price for an investment or derivative instrument is
unavailable or inappropriate, the Board of Trustees of the Fund,
or its designee, may establish fair value in accordance with
procedures established in good faith by the Board of Trustees.
Short-term investments are valued at amortized cost, which
approximates market value.
The senior loans in which the Fund invests are not listed on an
organized exchange and the secondary market for such investments
may be less liquid relative to markets for other fixed-income
securities. Consequently, the value of senior loans, determined
as described above, may differ significantly from the value that
would have been determined had there been an active market for
that senior loan.
Investment
Transactions
Investment transactions are recorded on a trade date basis.
Trade date for senior loans purchased in the primary
market is considered the date on which the loan
allocations are determined. Trade date for senior loans
purchased in the secondary market is the date on
which the transaction is entered into. Realized gains and losses
from investment transactions are determined on the specific
identification method. Investments purchased on a
when-issued/delayed delivery basis may have extended settlement
periods. Any investments so purchased are subject to market
fluctuation during this period. The Fund has instructed the
custodian to segregate assets with a current value at least
equal to the amount of the when-issued/delayed delivery purchase
commitments. At June 30, 2008, the Fund had outstanding
when issued/delayed delivery purchase commitments of $2,966,017.
Investment
Income
Dividend income is recorded on the ex-dividend date or, for
foreign securities, when information is available. Interest
income, which includes the amortization of premiums and
accretion of discounts for financial reporting purposes, is
recorded on an accrual basis. Interest income also includes
paydown gains and losses, fee income and amendment fees, if any.
Fee income consists primarily of amendment fees. Amendment fees
are earned as compensation for evaluating and accepting changes
to an original senior loan agreement and are recognized when
received.
Income
Taxes
The Fund intends to comply with the requirements of Subchapter M
of the Internal Revenue Code applicable to regulated investment
companies. The Fund intends to distribute substantially all of
its investment company taxable income to shareholders.
27
|
|
|
|
|
|
|
|
Notes to
FINANCIAL STATEMENTS
(continued) (Unaudited)
|
In any year when the Fund realizes
net capital gains, the Fund may choose to distribute all or a
portion of its net capital gains to shareholders, or
alternatively, to retain all or a portion of its net capital
gains and pay federal corporate income taxes on such retained
gains. During the tax year ended December 31, 2007, the
Fund retained $14,571,429 of realized long-term capital gains
and accrued a provision for federal corporate income taxes of
$5,100,000, the net of which has been reclassified to Paid-in
surplus.
Effective June 29, 2007, the Fund adopted Financial
Accounting Standards Board (FASB) Interpretation No. 48
Accounting for Uncertainty in Income Taxes
(FIN 48). FIN 48 provides guidance for how uncertain
tax positions should be recognized, measured, presented and
disclosed in the financial statements. FIN 48 requires the
affirmative evaluation of tax positions taken or expected to be
taken in the course of preparing the Funds tax returns to
determine whether it is
more-likely-than-not,
(i.e., a greater than
50-percent
likelihood) of being sustained by the applicable tax authority.
Tax positions not deemed to meet the
more-likely-than-not
threshold may result in a tax expense in the current year.
Implementation of FIN 48 required management of the Fund to
analyze all open tax years, as defined by the statute of
limitations, for all major jurisdictions, which includes federal
and certain states. Open tax years are those that are open for
examination by taxing authorities (i.e., generally, the last
four tax year ends and the interim tax period since then). The
Fund has no examinations in progress.
For all open tax years and all major taxing jurisdictions
through the end of the reporting period, management of the Fund
has reviewed all tax positions taken or expected to be taken in
the preparation of the Funds tax returns and concluded the
adoption of FIN 48 resulted in no impact to the Funds
net assets or results of operations as of and during the six
months ended June 30, 2008.
The Fund is also not aware of any tax positions for which it is
reasonably possible that the total amounts of unrecognized tax
benefits will significantly change in the next twelve months.
Dividends and
Distributions to Common Shareholders
Distributions to Common shareholders are recorded on the
ex-dividend date. The amount and timing of distributions are
determined in accordance with federal corporate income tax
regulations, which may differ from U.S. generally accepted
accounting principles.
The Fund makes quarterly cash distributions to Common
shareholders of a stated dollar amount per share. Subject to
approval and oversight by the Funds Board of Trustees, the
Fund seeks to maintain a stable distribution level designed to
deliver the long-term return potential of the Funds
investment strategy through regular quarterly distributions (a
Managed Distribution Program). Total distributions
during a calendar year generally will be made from the
Funds net investment income, net realized capital gains
and net unrealized capital gains in the Funds portfolio,
if any. The portion of distributions paid from net unrealized
gains, if any, would be distributed from the Funds assets
and would be treated by shareholders as a non-taxable
distribution for tax purposes. In the event that total
distributions during a calendar year exceed the Funds
total return on net asset value, the difference will be treated
as a return of capital for tax purposes and will reduce net
asset value per share. If the Funds total return on net
asset value exceeds total distributions during a calendar year,
the excess will be reflected as an increase in net asset value
per share. The final determination of the source and character
of all distributions for the fiscal year are made after the end
of the fiscal year and are reflected in the financial statements
contained in the annual report as of December 31 each year.
REIT distributions received by the Fund are generally comprised
of ordinary income, long-term and short-term capital gains, and
a return of REIT capital. The actual character of amounts
received during the period are not known until after the fiscal
year-end. For the fiscal year ended December 31, 2007, the
character of distributions to the Fund from the REITs was 52.86%
ordinary income, 27.53% long-term and short-term capital gains,
and 19.61% return of REIT capital.
For the fiscal year ended December 31, 2007, the Fund
applied the actual character of distributions reported by the
REITs in which the Fund invests to its receipts from the REITs.
If a REIT held in the portfolio of investments did not report
the actual character of its distributions during the period, the
Fund treated the distributions as ordinary income.
The actual character of distributions made by the Fund during
the fiscal year ended December 31, 2007 are reflected in
the accompanying financial statements.
The distributions made by the Fund to its shareholders during
the six months ended June 30, 2008, are provisionally
classified as being From and in excess of net investment
income, and those distributions will be classified as
being from net investment income, net realized capital gains
and/or a
return of capital for tax purposes after the fiscal year end,
based upon the income type breakdown information conveyed at the
time by the REITs whose securities are held in the Funds
portfolio. For purposes of
28
calculating Undistributed
(Over-distribution of) net investment income as of
June 30, 2008, the distribution amounts provisionally
classified as From and in excess of net investment
income were treated as being entirely from net investment
income. Consequently, the financial statements at June 30,
2008, reflect an over-distribution of net investment income.
FundPreferred
Shares
The Fund has issued and outstanding 2,400 Series T and
2,400 Series W FundPreferred shares, $25,000 stated value
per share, as a means of effecting financial leverage. The
dividend rate paid by the Fund on each Series is determined
every seven days, pursuant to a dutch auction process overseen
by the auction agent, and is payable at the end of each rate
period.
Beginning in February 2008, more shares for sale were submitted
in the regularly scheduled auctions for the FundPreferred shares
issued by the Fund than there were offers to buy. This meant
that these auctions failed to clear, and that many
FundPreferred shareholders who wanted to sell their shares in
these auctions were unable to do so. FundPreferred shareholders
unable to sell their shares received distributions at the
maximum rate applicable to failed auctions as
calculated in accordance with the pre-established terms of the
FundPreferred shares.
These developments generally do not affect the management or
investment policies of the Fund. However, one implication of
these auction failures for Common shareholders is that the
Funds cost of leverage will likely be higher, at least
temporarily, than it otherwise would have been had the auctions
continued to be successful. As a result, the Funds future
Common share earnings may be lower than they otherwise would
have been.
Foreign Currency
Transactions
The Fund is authorized to engage in foreign currency exchange
transactions, including foreign currency forward, futures,
options and swap contracts. To the extent that the Fund invests
in securities and/or contracts that are denominated in a
currency other than U.S. dollars, the Fund will be subject to
currency risk, which is the risk that an increase in the U.S.
dollar relative to the foreign currency will reduce returns or
portfolio value. Generally, when the U.S. dollar rises in value
against a foreign currency, the Funds investments
denominated in that currency will lose value because its
currency is worth fewer U.S. dollars; the opposite effect occurs
if the U.S. dollar falls in relative value. Investments and
other assets and liabilities denominated in foreign currencies
are converted into U.S. dollars on a spot (i.e. cash) basis at
the spot rate prevailing in the foreign currency exchange market
at the time of valuation. Purchases and sales of investments and
income denominated in foreign currencies are translated into
U.S. dollars on the respective dates of such transactions. The
gains or losses resulting from changes in foreign exchange rates
are included in Realized gain (loss) from foreign
currencies and Change in net unrealized appreciation
(depreciation) of foreign currencies on the Statement of
Operations.
The books and records of the Fund are maintained in U.S.
dollars. Foreign currencies, investments and other assets and
liabilities are translated into U.S. dollars at 4:00 p.m.
Eastern time. Investments and income and expenses are translated
on the respective dates of such transactions. Net realized
foreign currency gains and losses resulting from changes in
exchange rates include foreign currency gains and losses between
trade date and settlement date of the transactions, foreign
currency transactions, and the difference between the amounts of
interest and dividends recorded on the books of the Fund and the
amounts actually received.
Forward Foreign
Currency Exchange Contracts
The Fund is authorized to enter into forward foreign currency
exchange contracts. Generally, the Fund may enter into forward
foreign currency exchange contracts only under two
circumstances: (i) when a Fund enters into a contract for
the purchase or sale of a security denominated in a foreign
currency to lock in the U.S. exchange rate of
the transaction, with such period being a short-dated contract
covering the period between transaction date and settlement
date; or (ii) when Nuveen Asset Management (the
Adviser), a wholly owned subsidiary of Nuveen
Investments, Inc. (Nuveen), believes that the
currency of a particular foreign country may experience a
substantial movement against the U.S. dollar or against
another foreign currency. Forward foreign currency contracts are
valued daily at the forward rate. The change in market value is
recorded as an unrealized gain or loss by the Fund. When the
contract is closed or offset with the same counterparty, the
Fund records a realized gain or loss equal to the difference
between the value of the contract at the time it was opened and
the value at the time it was closed or offset.
Forward foreign currency contracts will generally not be entered
into for terms greater than three months. The use of forward
foreign currency contracts does not eliminate fluctuations in
the underlying prices of the Funds investment securities;
however, it does establish a rate of exchange that can be
achieved in the future. The use of forward foreign currency
contracts involves the risk that anticipated currency movements
will not be accurately predicted. A forward foreign currency
contract would limit the risk of loss due to a decline in the
value of a particular currency; however, it also would limit any
potential gain that might result
29
|
|
|
|
|
|
|
|
Notes to
FINANCIAL STATEMENTS
(continued) (Unaudited)
|
should the value of the currency
increase instead of decrease. These contracts may involve market
risk in excess of the unrealized gain or loss reflected on the
Statement of Assets and Liabilities. In addition, the Fund could
be exposed to risks if counterparties to the contracts are
unable to meet the terms of their contracts. The counterparty
risk exposure is, therefore, closely monitored and contracts are
only executed with high credit quality financial
institutions.
Repurchase
Agreements
In connection with transactions in repurchase agreements, it is
the Funds policy that its custodian take possession of the
underlying collateral securities, the fair value of which
exceeds the principal amount of the repurchase transaction,
including accrued interest, at all times. If the seller
defaults, and the fair value of the collateral declines,
realization of the collateral may be delayed or limited.
Custodian Fee
Credit
The Fund has an arrangement with the custodian bank whereby
certain custodian fees and expenses are reduced by net credits
earned on the Funds cash on deposit with the bank. Such
deposit arrangements are an alternative to overnight
investments. Credits for cash balances may be offset by charges
for any days on which the Fund overdraws its account at the
custodian bank.
Indemnifications
Under the Funds organizational documents, its Officers and
Trustees are indemnified against certain liabilities arising out
of the performance of their duties to the Fund. In addition, in
the normal course of business, the Fund enters into contracts
that provide general indemnifications to other parties. The
Funds maximum exposure under these arrangements is unknown
as this would involve future claims that may be made against the
Fund that have not yet occurred. However, the Fund has not had
prior claims or losses pursuant to these contracts and expects
the risk of loss to be remote.
Use of
Estimates
The preparation of financial statements in conformity with U.S.
generally accepted accounting principles requires management to
make estimates and assumptions that affect the reported amounts
of assets and liabilities at the date of the financial
statements and the reported amounts of increases and decreases
in net assets applicable to Common shares from operations during
the reporting period. Actual results may differ from those
estimates.
|
|
2.
|
Fair Value
Measurements
|
During the current fiscal period, the Fund adopted the
provisions of Statement of Financial Accounting Standards
No. 157, Fair Value Measurements (SFAS 157).
SFAS 157 defines fair value, establishes a framework for
measuring fair value in generally accepted accounting
principles, and expands disclosure about fair value
measurements. In determining the value of the Funds
investments various inputs are used. These inputs are summarized
in the three broad levels listed below:
|
|
|
|
Level 1
|
Quoted prices in active markets for identical securities.
|
|
|
Level 2
|
Other significant observable inputs (including quoted prices for
similar securities, interest rates, prepayment speeds, credit
risk, etc.).
|
|
|
Level 3
|
Significant unobservable inputs (including managements
assumptions in determining the fair value of investments).
|
The inputs or methodology used for valuing securities are not an
indication of the risk associated with investing in those
securities.
The following is a summary of the Funds fair value
measurements as of June 30, 2008:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Level 1
|
|
|
Level 2
|
|
|
Level 3
|
|
|
Total
|
|
|
|
Investments
|
|
$
|
210,499,955
|
|
|
$
|
231,640,453
|
|
|
$
|
3,524,054
|
|
|
$
|
445,664,462
|
|
Derivatives*
|
|
|
|
|
|
|
(95,185
|
)
|
|
|
|
|
|
|
(95,185
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
$
|
210,499,955
|
|
|
$
|
231,545,268
|
|
|
$
|
3,524,054
|
|
|
$
|
445,569,277
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* |
Represents net unrealized appreciation (depreciation).
|
30
The following is a reconciliation of the Funds
Level 3 investments held at the beginning and end of the
measurement period:
|
|
|
|
|
|
|
Level 3
|
|
|
|
Investments
|
|
|
|
Balance as of December 31, 2007
|
|
$
|
931,395
|
|
Gains (losses):
|
|
|
|
|
Net realized gains (losses)
|
|
|
117,849
|
|
Net change in unrealized appreciation (depreciation)
|
|
|
(67,319
|
)
|
Net purchases at cost (sales at proceeds)
|
|
|
1,542,111
|
|
Net discounts (premiums)
|
|
|
7,798
|
|
Net transfers in to (out of) at end of period fair value
|
|
|
992,220
|
|
|
|
|
|
|
Balance as of June 30, 2008
|
|
$
|
3,524,054
|
|
|
|
|
|
|
Transactions in Common shares were as follows:
|
|
|
|
|
|
|
|
|
|
|
Six Months
|
|
Year
|
|
|
Ended
|
|
Ended
|
|
|
6/30/08
|
|
12/31/07
|
Common shares issued to shareholders due to reinvestment of
distributions
|
|
|
|
|
|
|
42,661
|
|
|
|
|
|
|
|
|
|
|
|
|
4.
|
Investment
Transactions
|
Purchases and sales (including maturities but excluding
short-term investments and derivative transactions) during the
six months ended June 30, 2008, aggregated $120,689,526 and
$131,090,486, respectively.
|
|
5.
|
Income Tax
Information
|
The following information is presented on an income tax basis.
Differences between amounts for financial statement and federal
income tax purposes are primarily due to the treatment of
paydown gains and losses, recognition of premium amortization,
recognition of income on REIT investments and timing differences
in recognizing certain gains and losses on investment
transactions. To the extent that differences arise that are
permanent in nature, such amounts are reclassified within the
capital accounts on the Statement of Assets and Liabilities
presented in the annual report, based on their federal tax basis
treatment; temporary differences do not require
reclassification. Temporary and permanent differences do not
impact the net asset value of the Fund.
At June 30, 2008, the cost of investments was $456,431,172.
Gross unrealized appreciation and gross unrealized depreciation
of investments at June 30, 2008, were as follows:
|
|
|
|
|
Gross unrealized:
|
|
|
|
|
Appreciation
|
|
$
|
32,725,105
|
|
Depreciation
|
|
|
(43,491,815
|
)
|
|
|
|
|
|
Net unrealized appreciation (depreciation) of investments
|
|
$
|
(10,766,710
|
)
|
|
|
|
|
|
The tax components of undistributed net ordinary income and net
long-term capital gains at December 31, 2007, the
Funds last tax year end, were as follows:
|
|
|
|
|
Undistributed net ordinary income *
|
|
$
|
|
|
Undistributed net long-term capital gains
|
|
|
1,243,596
|
|
|
|
|
|
|
|
|
* |
Net ordinary income consists of net taxable income derived from
dividends, interest, and net short-term capital gains, if any.
|
The tax character of distributions paid during the Funds
last tax year ended December 31, 2007, was designated for
purposes of the dividends paid deduction as follows:
|
|
|
|
|
Distributions from net ordinary income *
|
|
$
|
20,515,163
|
|
Distributions from net long-term capital gains
|
|
|
16,685,616
|
|
|
|
|
|
|
|
|
* |
Net ordinary income consists of net taxable income derived from
dividends, interest, and net short-term capital gains, if any.
|
31
|
|
|
|
|
|
|
|
Notes to
FINANCIAL STATEMENTS
(continued) (Unaudited)
|
The Fund elected to defer net realized losses from investments
incurred from November 1, 2007 through December 31,
2007, the Funds last tax year and, (post-October
losses) in accordance with federal income tax regulations.
Post-October currency losses of $167,929 were treated as having
arisen on the first day of the current fiscal year.
|
|
6.
|
Management Fees
and Other Transactions with Affiliates
|
The Funds management fee is separated into two
components a complex-level component, based on the
aggregate amount of all fund assets managed by the Adviser, and
a specific fund-level component, based only on the amount of
assets within the Fund. This pricing structure enables Nuveen
fund shareholders to benefit from growth in the assets within
each individual fund as well as from growth in the amount of
complex-wide assets managed by the Adviser.
The annual fund-level fee, payable monthly, is based upon the
average daily Managed Assets of the Fund as follows:
|
|
|
|
|
Average Daily Managed Assets
|
|
Fund-Level Fee Rate
|
For the first $500 million
|
|
|
.7000
|
%
|
For the next $500 million
|
|
|
.6750
|
|
For the next $500 million
|
|
|
.6500
|
|
For the next $500 million
|
|
|
.6250
|
|
For Managed Assets over $2 billion
|
|
|
.6000
|
|
|
|
|
|
|
The annual complex-level fee, payable monthly, which is additive
to the fund-level fee, for all Nuveen sponsored funds in the
U.S., is based on the aggregate amount of total fund assets
managed as stated in the table below. As of June 30, 2008,
the complex-level fee rate was .1868%.
The complex-level fee schedule is as follows:
|
|
|
|
|
Complex-Level Asset Breakpoint
Level (1)
|
|
Effective Rate at Breakpoint Level
|
$55 billion
|
|
|
.2000
|
%
|
$56 billion
|
|
|
.1996
|
|
$57 billion
|
|
|
.1989
|
|
$60 billion
|
|
|
.1961
|
|
$63 billion
|
|
|
.1931
|
|
$66 billion
|
|
|
.1900
|
|
$71 billion
|
|
|
.1851
|
|
$76 billion
|
|
|
.1806
|
|
$80 billion
|
|
|
.1773
|
|
$91 billion
|
|
|
.1691
|
|
$125 billion
|
|
|
.1599
|
|
$200 billion
|
|
|
.1505
|
|
$250 billion
|
|
|
.1469
|
|
$300 billion
|
|
|
.1445
|
|
|
|
|
|
|
|
|
(1) |
The complex-level fee component of the management fee for the
funds is calculated based upon the aggregate Managed Assets
(Managed Assets means the average daily net assets
of each fund including assets attributable to preferred stock
issued by or borrowings by the Nuveen funds) of Nuveen-sponsored
funds in the U.S.
|
The management fee compensates the Adviser for overall
investment advisory and administrative services and general
office facilities. The Adviser has entered into Sub-Advisory
Agreements with NWQ Investment Management Company, LLC
(NWQ), Security Capital Research & Management
Incorporated (Security Capital), Symphony Asset
Management, LLC (Symphony) and Wellington Management
Company, LLP (Wellington). Nuveen owns a controlling
interest in NWQ while key management of NWQ owns a
non-controlling minority interest. Symphony is an indirect
wholly owned subsidiary of Nuveen. NWQ manages the portion of
the Funds investment portfolio allocated to
dividend-paying common stocks including American Depositary
Receipts (ADRs). Security Capital manages the
portion of the Funds investment portfolio allocated to
securities issued by real estate companies including REITs.
Symphony manages the portion of the Funds investment
portfolio allocated to senior loans. Wellington manages the
portion of the Funds investment portfolio allocated to
emerging markets debt and foreign corporate bonds. NWQ, Security
Capital, Symphony and Wellington are compensated for their
services to the Fund from the management fee paid to the Adviser.
The Fund pays no compensation directly to those of its Trustees
who are affiliated with the Adviser or to its Officers, all of
whom receive remuneration for their services to the Fund from
the Adviser or its affiliates. The Board of Trustees has adopted
a deferred compensation plan for independent Trustees that
enables Trustees to elect to defer receipt of all or a portion
of the annual
32
compensation they are entitled to
receive from certain Nuveen advised funds. Under the plan,
deferred amounts are treated as though equal dollar amounts had
been invested in shares of select Nuveen advised funds.
For the first eight years of the Funds operations, the
Adviser has agreed to reimburse the Fund, as a percentage of
average daily Managed Assets, for fees and expenses in the
amounts and for the time periods set forth below:
|
|
|
|
|
|
|
|
|
|
|
Year Ending
|
|
|
|
Year Ending
|
|
|
September 30,
|
|
|
|
September 30,
|
|
|
2003 *
|
|
|
.32
|
%
|
|
2008
|
|
|
.32
|
%
|
2004
|
|
|
.32
|
|
|
2009
|
|
|
.24
|
|
2005
|
|
|
.32
|
|
|
2010
|
|
|
.16
|
|
2006
|
|
|
.32
|
|
|
2011
|
|
|
.08
|
|
2007
|
|
|
.32
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* |
From the commencement of operations.
|
The Adviser has not agreed to reimburse the Fund for any portion
of its fees and expenses beyond September 30, 2011.
|
|
7.
|
Senior Loan
Commitments
|
Unfunded
Commitments
Pursuant to the terms of certain of the variable rate senior
loan agreements, the Fund may have unfunded senior loan
commitments. The Fund will maintain with its custodian, cash,
liquid securities and/or liquid senior loans having an aggregate
value at least equal to the amount of unfunded senior loan
commitments. At June 30, 2008, the Fund had unfunded senior
loan commitments of $255,770.
Participation
Commitments
With respect to the senior loans held in the Funds
portfolio, the Fund may: 1) invest in assignments;
2) act as a participant in primary lending syndicates; or
3) invest in participations. If the Fund purchases a
participation of a senior loan interest, the Fund would
typically enter into a contractual agreement with the lender or
other third party selling the participation, rather than
directly with the Borrower. As such, the Fund not only assumes
the credit risk of the Borrower, but also that of the Selling
Participant or other persons interpositioned between the Fund
and the Borrower. At June 30, 2008, there were no such
outstanding participation commitments.
|
|
8.
|
Borrowing
Arrangements
|
On August 15, 2006, the Fund entered into a commercial
paper program ($45 million maximum) with CITIBANK
N.A.s conduit financing agency, CHARTA, LLC
(CHARTA). CHARTA issues high grade commercial paper
and uses the proceeds to make advances to the Fund. For the six
months ended June 30, 2008, the average daily balance of
borrowings under the commercial paper program agreement was the
full $45 million maximum allowed. The interest expense
incurred on borrowings is recognized as Interest expense
on borrowings on the Statement of Operations. The average
annualized interest rate on such borrowings for the six months
ended June 30, 2008, was 3.60%. In addition to the interest
expense, the Fund also pays a .21% per annum program fee, a .10%
per annum liquidity fee and a .05% per annum dealer commission
fee all of which are recognized as Fees on
borrowings on the Statement of Operations.
|
|
9.
|
New Accounting
Pronouncement
|
Financial
Accounting Standards Board Statement of Financial Accounting
Standards No. 161
In March 2008, the FASB issued SFAS No. 161,
Disclosures about Derivative Instruments and Hedging
Activities. This standard is intended to enhance financial
statement disclosures for derivative instruments and hedging
activities and enable investors to understand: a) how and
why a fund uses derivative instruments, b) how derivative
instruments and related hedge items are accounted for, and
c) how derivative instruments and related hedge items
affect a funds financial position, results of operations
and cash flows. SFAS No. 161 is effective for
financial statements issued for fiscal years and interim periods
beginning after November 15, 2008. As of June 30,
2008, management does not believe the adoption of
SFAS No. 161 will impact the financial statement
amounts; however, additional footnote disclosures may be
required about the use of derivative instruments and hedging
items.
Common Share
Repurchases
The Board of Directors/Trustees for each of Nuveens 120
closed-end funds approved a program, effective August 7,
2008, under which each fund may repurchase up to 10% of its
common shares.
33
|
|
|
|
|
|
|
|
Financial
HIGHLIGHTS (Unaudited)
Selected data for a Common
share outstanding throughout each period:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment Operations
|
|
|
Less Distributions
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Distributions
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
from Net
|
|
|
Distributions
|
|
|
|
|
|
Net
|
|
|
|
|
|
|
|
|
|
|
|
Offering Costs
|
|
|
|
|
|
|
|
|
Beginning
|
|
|
|
|
|
Net
|
|
|
Investment
|
|
|
from Capital
|
|
|
|
|
|
Investment
|
|
|
Capital
|
|
|
Tax
|
|
|
|
|
|
and
|
|
|
Ending
|
|
|
|
|
|
Common
|
|
|
|
|
|
Realized/
|
|
|
Income to
|
|
|
Gains to
|
|
|
|
|
|
Income to
|
|
|
Gains to
|
|
|
Return of
|
|
|
|
|
|
FundPreferred
|
|
|
Common
|
|
|
|
|
|
Share
|
|
|
Net
|
|
|
Unrealized
|
|
|
FundPreferred
|
|
|
FundPreferred
|
|
|
|
|
|
Common
|
|
|
Common
|
|
|
Capital to
|
|
|
|
|
|
Share
|
|
|
Share
|
|
|
Ending
|
|
|
Net Asset
|
|
|
Investment
|
|
|
Gain
|
|
|
Share-
|
|
|
Share-
|
|
|
|
|
|
Share-
|
|
|
Share-
|
|
|
Common
|
|
|
|
|
|
Underwriting
|
|
|
Net Asset
|
|
|
Market
|
|
|
Value
|
|
|
Income(a)
|
|
|
(Loss)(b)
|
|
|
holders
|
|
|
holders
|
|
|
Total
|
|
|
holders
|
|
|
holders
|
|
|
Shareholders
|
|
|
Total
|
|
|
Discounts
|
|
|
Value
|
|
|
Value
|
Year Ended 12/31:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2008(d)
|
|
|
$16.09
|
|
|
$
|
.46
|
|
|
|
$(1.89
|
)
|
|
|
$(.11
|
)***
|
|
$
|
|
|
|
$
|
(1.54
|
)
|
|
|
$(.74
|
)***
|
|
$
|
|
|
|
$
|
|
|
|
$
|
(.74
|
)
|
|
$
|
|
|
|
|
$13.81
|
|
|
$
|
12.04
|
2007
|
|
|
19.22
|
|
|
|
1.02
|
|
|
|
(2.30
|
)
|
|
|
(.12
|
)
|
|
|
(.19
|
)
|
|
|
(1.59
|
)
|
|
|
(.90
|
)
|
|
|
(.64
|
)
|
|
|
|
|
|
|
(1.54
|
)
|
|
|
|
|
|
|
16.09
|
|
|
|
14.28
|
2006
|
|
|
16.88
|
|
|
|
.99
|
|
|
|
2.98
|
|
|
|
(.13
|
)
|
|
|
(.15
|
)
|
|
|
3.69
|
|
|
|
(.98
|
)
|
|
|
(.37
|
)
|
|
|
|
|
|
|
(1.35
|
)
|
|
|
|
|
|
|
19.22
|
|
|
|
21.03
|
2005
|
|
|
16.85
|
|
|
|
.83
|
|
|
|
1.00
|
|
|
|
(.09
|
)
|
|
|
(.10
|
)
|
|
|
1.64
|
|
|
|
(.71
|
)
|
|
|
(.90
|
)
|
|
|
|
|
|
|
(1.61
|
)
|
|
|
|
|
|
|
16.88
|
|
|
|
16.35
|
2004
|
|
|
15.13
|
|
|
|
.81
|
|
|
|
2.23
|
|
|
|
(.06
|
)
|
|
|
(.03
|
)
|
|
|
2.95
|
|
|
|
(.81
|
)
|
|
|
(.41
|
)
|
|
|
(.01
|
)
|
|
|
(1.23
|
)
|
|
|
|
|
|
|
16.85
|
|
|
|
15.57
|
2003(c)
|
|
|
14.33
|
|
|
|
.18
|
|
|
|
1.01
|
|
|
|
(.01
|
)
|
|
|
|
|
|
|
1.18
|
|
|
|
(.18
|
)
|
|
|
(.02
|
)
|
|
|
(.01
|
)
|
|
|
(.21
|
)
|
|
|
(.17
|
)
|
|
|
15.13
|
|
|
|
15.65
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FundPreferred Shares at End of Period
|
|
|
Borrowings at End of Period
|
|
|
|
Aggregate
|
|
|
|
|
|
|
|
|
Aggregate
|
|
|
|
|
|
|
Amount
|
|
|
Liquidation
|
|
|
Asset
|
|
|
Amount
|
|
|
Asset
|
|
|
|
Outstanding
|
|
|
and Market
|
|
|
Coverage
|
|
|
Outstanding
|
|
|
Coverage
|
|
|
|
(000)
|
|
|
Value Per Share
|
|
|
Per Share
|
|
|
(000)
|
|
|
Per $1,000
|
|
|
|
2008(d)
|
|
|
$120,000
|
|
|
|
$25,000
|
|
|
$
|
83,130
|
|
|
|
$45,000
|
|
|
$
|
9,867
|
|
2007
|
|
|
120,000
|
|
|
|
25,000
|
|
|
|
92,729
|
|
|
|
45,000
|
|
|
|
10,891
|
|
2006
|
|
|
120,000
|
|
|
|
25,000
|
|
|
|
105,715
|
|
|
|
45,000
|
|
|
|
12,276
|
|
2005
|
|
|
120,000
|
|
|
|
25,000
|
|
|
|
95,857
|
|
|
|
|
|
|
|
|
|
2004
|
|
|
120,000
|
|
|
|
25,000
|
|
|
|
95,718
|
|
|
|
|
|
|
|
|
|
2003(c)
|
|
|
120,000
|
|
|
|
25,000
|
|
|
|
88,414
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a)
|
Per share Net Investment Income is calculated using the average
daily shares method.
|
(b)
|
Net of federal corporate income taxes on long-term capital gains
retained by the Fund per share as follows:
|
|
|
|
|
|
|
Long-Term
|
|
|
Capital Gains
|
|
|
Retained
|
Year Ended 12/31:
|
|
|
|
2008(d)
|
|
|
N/A
|
2007
|
|
$
|
.25
|
2006
|
|
|
.25
|
2005
|
|
|
N/A
|
2004
|
|
|
N/A
|
2003(c)
|
|
|
N/A
|
|
|
|
|
|
|
(c)
|
For the period September 25, 2003 (commencement of
operations) through December 31, 2003.
|
(d)
|
For the six months ended June 30, 2008.
|
34
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Returns
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Based
|
|
|
Ratios/Supplemental Data
|
|
|
|
|
|
|
on
|
|
|
|
|
|
Ratios to Average Net Assets Applicable to
|
|
|
Ratios to Average Net Assets Applicable to
|
|
|
|
|
|
|
|
|
|
Common
|
|
|
Ending Net
|
|
|
Common Shares
|
|
|
Common Shares
|
|
|
|
|
|
|
Based
|
|
|
Share
|
|
|
Assets
|
|
|
Before Credit/Reimbursement
|
|
|
After Credit/Reimbursement**
|
|
|
|
|
|
|
on
|
|
|
Net
|
|
|
Applicable to
|
|
|
|
|
|
Net
|
|
|
|
|
|
Net
|
|
|
Portfolio
|
|
|
|
Market
|
|
|
Asset
|
|
|
Common
|
|
|
|
|
|
Investment
|
|
|
|
|
|
Investment
|
|
|
Turnover
|
|
|
|
Value*
|
|
|
Value*
|
|
|
Shares (000)
|
|
|
Expenses
|
|
|
Income
|
|
|
Expenses
|
|
|
Income
|
|
|
Rate
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(10.65
|
)%
|
|
|
(9.64
|
)%
|
|
$
|
279,023
|
|
|
|
2.20
|
%****
|
|
|
5.58
|
%****
|
|
|
1.71
|
%****
|
|
|
6.07
|
%****
|
|
|
26
|
%
|
|
|
|
(25.75
|
)
|
|
|
(9.00
|
)
|
|
|
325,097
|
|
|
|
2.20
|
|
|
|
5.06
|
|
|
|
1.74
|
|
|
|
5.53
|
|
|
|
48
|
|
|
|
|
38.72
|
|
|
|
22.66
|
|
|
|
387,432
|
|
|
|
1.70
|
|
|
|
5.03
|
|
|
|
1.26
|
|
|
|
5.47
|
|
|
|
44
|
|
|
|
|
16.36
|
|
|
|
10.21
|
|
|
|
340,113
|
|
|
|
1.42
|
|
|
|
4.53
|
|
|
|
.99
|
|
|
|
4.96
|
|
|
|
49
|
|
|
|
|
8.04
|
|
|
|
20.44
|
|
|
|
339,446
|
|
|
|
1.50
|
|
|
|
4.74
|
|
|
|
1.06
|
|
|
|
5.19
|
|
|
|
46
|
|
|
|
|
5.76
|
|
|
|
7.04
|
|
|
|
304,387
|
|
|
|
1.26
|
****
|
|
|
4.51
|
****
|
|
|
.87
|
****
|
|
|
4.89
|
****
|
|
|
28
|
|
|
|
|
|
* |
Total Return Based on Market Value is the combination of changes
in the market price per share and the effect of reinvested
dividend income and reinvested capital gains distributions, if
any, at the average price paid per share at the time of
reinvestment. The last dividend declared in the period, which is
typically paid on the first business day of the following month,
is assumed to be reinvested at the ending market price. The
actual reinvestment for the last dividend declared in the period
takes place over several days, and in some instances may not be
based on the market price, so the actual reinvestment price may
be different from the price used in the calculation. Total
returns are not annualized.
|
|
|
|
Total Return Based on Common Share Net Asset Value is the
combination of changes in Common Share net asset value,
reinvested dividend income at net asset value and reinvested
capital gains distributions at net asset value, if any. The last
dividend declared in the period, which is typically paid on the
first business day of the following month, is assumed to be
reinvested at the ending net asset value. The actual reinvest
price for the last dividend declared in the period may often be
based on the Funds market price (and not its net asset
value), and therefore may be different from the price used in
the calculation. Total returns are not annualized.
|
|
|
|
The Fund elected to retain a portion of its realized long-term
capital gains for the tax years ended December 31, and pay
required federal corporate income taxes on these amounts. As
reported on Form 2439, Common shareholders on record date
must include their pro-rata share of these gains on their
applicable federal tax returns, and are entitled to take
offsetting tax credits, for their pro-rata share of the taxes
paid by the Fund. The standardized total returns shown above do
not include the economic benefit to Common shareholders on
record date of these tax credits/refunds. The Funds
corresponding Total Return Based on Market Value and Common
Share Net Asset Value when these benefits are included are as
follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Returns
|
|
|
|
Common
|
|
|
|
|
|
Based on
|
|
|
|
Shareholders
|
|
|
Based on
|
|
|
Common Share
|
|
|
|
of Record on
|
|
|
Market Value
|
|
|
Net Asset Value
|
|
|
|
|
Tax Year Ended 12/31:
|
|
|
|
|
|
|
|
|
|
|
|
|
2008(d)
|
|
|
N/A
|
|
|
|
N/A
|
|
|
|
N/A
|
|
2007
|
|
|
December 31
|
|
|
|
(24.47
|
)%
|
|
|
(7.60
|
)%
|
2006
|
|
|
December 29
|
|
|
|
40.37
|
|
|
|
24.26
|
|
2005
|
|
|
N/A
|
|
|
|
N/A
|
|
|
|
N/A
|
|
2004
|
|
|
N/A
|
|
|
|
N/A
|
|
|
|
N/A
|
|
2003(c)
|
|
|
N/A
|
|
|
|
N/A
|
|
|
|
N/A
|
|
|
|
|
|
**
|
After custodian fee credit and expense reimbursement.
|
***
|
Represents distributions paid From and in excess of net
investment income for the six months ended June 30,
2008.
|
****
|
Annualized.
|
|
The amounts shown are based on Common share equivalents.
|
|
|
|
Ratios do not reflect the effect of dividend payments to
FundPreferred shareholders.
|
|
|
|
Income ratios reflect income earned on assets attributable to
FundPreferred shares and borrowings, where applicable.
|
|
Each ratio includes the effect of the interest expense paid on
borrowings as follows:
|
|
|
|
|
|
|
|
Ratio of Borrowings Interest Expense
|
|
|
|
to Average Net Assets Applicable to Common Shares
|
|
|
|
Year Ended 12/31:
|
2008(d)
|
|
|
.53
|
%****
|
2007
|
|
|
.66
|
|
2006
|
|
|
.26
|
****
|
2005
|
|
|
|
|
2004
|
|
|
|
|
2003(c)
|
|
|
|
|
|
|
|
|
N/A |
Not applicable for the six months ended June 30, 2008. The
Fund did not elect to retain a portion of its
long-term
capital gains prior to the tax year ended December 31, 2006.
|
See accompanying notes to
financial statements.
35
Annual Investment
Management Agreement
APPROVAL PROCESS
The Investment Company Act of 1940, as amended (the
1940 Act), provides, in substance, that
each investment advisory agreement between a fund and its
investment adviser (including
sub-advisers)
will continue in effect from year to year only if its
continuance is approved at least annually by the funds
board members, including by a vote of a majority of the board
members who are not parties to the advisory agreement or
interested persons of any parties (the
Independent Board Members), cast in person at
a meeting called for the purpose of considering such approval.
In connection with such approvals, the funds board members
must request and evaluate, and the investment adviser is
required to furnish, such information as may be reasonably
necessary to evaluate the terms of the advisory agreement.
Accordingly, at a meeting held on
May 28-29,
2008 (the May Meeting), the Board of Trustees
(the Board and each Trustee, a Board
Member) of the Fund, including a majority of the
Independent Board Members, considered and approved the
continuation of the advisory and
sub-advisory
agreements for the Fund for an additional one-year period. These
agreements include the investment advisory agreement between
Nuveen Asset Management (NAM) and the Fund
and the
sub-advisory
agreements between NAM and NWQ Investment Management Company,
LLC (NWQ), NAM and Symphony Asset Management
LLC (Symphony), NAM and Wellington Management
Company, LLP (Wellington), and NAM and
Security Capital Research & Management Incorporated
(Security Capital and, together with NWQ,
Symphony and Wellington, the
Sub-Advisers),
respectively. In preparation for their considerations at the May
Meeting, the Board also held a separate meeting on
April 23, 2008 (the April Meeting).
Accordingly, the factors considered and determinations made
regarding the renewals by the Independent Board Members include
those made at the April Meeting.
In addition, in evaluating the advisory agreement (the
Investment Management Agreement) and
sub-advisory
agreements (the
Sub-Advisory
Agreements, and the Investment Management Agreement
and the
Sub-Advisory
Agreements are each an Advisory Agreement),
as described in further detail below, the Independent Board
Members reviewed a broad range of information relating to the
Fund, NAM and the
Sub-Advisers
(NAM and the
Sub-Advisers
are each a Fund Adviser), including absolute
performance, fee and expense information for the Fund as well as
comparative performance, fee and expense information for a
comparable peer group of funds, the performance information of
recognized
and/or
customized benchmarks (as applicable), the profitability of
Nuveen for its advisory activities (which includes its wholly
owned subsidiaries), and other information regarding the
organization, personnel, and services provided by the respective
Fund Adviser. The Independent Board Members also met quarterly
as well as at other times as the need arose during the year and
took into account the information provided at such meetings and
the knowledge gained therefrom. Prior to approving the renewal
of the Advisory Agreements, the Independent Board Members
reviewed the foregoing information with their independent legal
counsel and with management, reviewed materials from independent
legal counsel describing applicable law and their duties in
reviewing advisory contracts, and met with independent legal
counsel in private sessions without management present. The
Independent Board Members considered the legal advice provided
by independent legal counsel and relied upon their knowledge of
the Fund Adviser, its services and the Fund resulting from their
meetings and other interactions throughout the year and their
own business judgment in determining the factors to be
considered in evaluating the Advisory Agreements. Each Board
Member may have accorded different weight to the various factors
in reaching his or her conclusions with respect to the
Funds Advisory Agreements. The Independent Board Members
did not identify any single factor as all-important or
controlling. The Independent Board Members considerations
were instead based on a comprehensive consideration of all the
information presented. The principal factors considered by the
Board and its conclusions are described below.
|
|
A.
|
Nature, Extent
and Quality of Services
|
In considering renewal of the Investment Management Agreement,
the Independent Board Members considered the nature, extent and
quality of the Fund Advisers services, including advisory
services and administrative services. The Independent Board
Members reviewed materials outlining, among other things,
NAMs organization and business; the types of services that
NAM or its affiliates provide and are expected to provide to the
Fund; the performance record of the Fund (as described in
further detail below); and any initiatives Nuveen had taken for
the applicable fund product line.
36
With respect to personnel, the
Independent Board Members evaluated the background, experience
and track record of the Fund Advisers investment
personnel. In this regard, the Independent Board Members
considered the additional investment in personnel to support
Nuveen fund advisory activities, including in operations,
product management and marketing as well as related fund support
functions, including sales, executive, finance, human resources
and information technology. The Independent Board Members also
reviewed information regarding portfolio manager compensation
arrangements to evaluate NAMs ability to attract and
retain high quality investment personnel.
In evaluating the services of NAM, the Independent Board Members
also considered NAMs oversight of the performance,
business activities and compliance of the
Sub-Advisers,
the ability to supervise the Funds other service providers
and given the importance of compliance, NAMs compliance
program. Among other things, the Independent Board Members
considered the report of the chief compliance officer regarding
the Funds compliance policies and procedures.
In addition to advisory services, the Independent Board Members
considered the quality of administrative services provided by
NAM and its affiliates including product management, fund
administration, oversight of service providers, shareholder
services, administration of Board relations, regulatory and
portfolio compliance and legal support.
The Independent Board Members reviewed an evaluation of each
Sub-Adviser
from NAM, including information as to the process followed by
NAM in evaluating
sub-advisers.
The evaluation also included information relating to each
Sub-Advisers
organization, operations, personnel, assets under management,
investment philosophy, strategies and techniques in managing the
Fund, developments affecting each
Sub-Adviser,
and an analysis of each
Sub-Adviser.
The Board considered the performance of the portion of the
investment portfolio of the Fund for which the respective
Sub-Adviser
is responsible. The Board also recognized that the
Sub-Advisory
Agreements were essentially agreements for portfolio management
services only and the
Sub-Advisers
were not expected to supply other significant administrative
services to the Fund. During the last year, the Independent
Board Members noted that they visited several
sub-advisers
to the Nuveen funds, meeting their key investment and business
personnel. In this regard, the Independent Board Members visited
NWQ, Symphony and Security Capital during 2007. The Independent
Board Members also noted that they anticipate visiting each
sub-adviser
to the Nuveen funds at least once over the course of a
multiple-year rotation. The Independent Board Members further
noted that NAM recommended the renewal of the
Sub-Advisory
Agreements and considered the basis for such recommendations and
any qualifications in connection therewith.
In addition to the foregoing services, the Independent Board
Members also noted the additional services that NAM or its
affiliates provide to closed-end funds, including, in
particular, its secondary market support activities and the
costs of such activities. The Independent Board Members
recognized Nuveens continued commitment to supporting the
secondary market for the common shares of its closed-end funds
through a variety of programs designed to raise investor and
analyst awareness and understanding of closed-end funds. These
efforts include maintaining an investor relations program to
timely provide information and education to financial advisers
and investors; providing advertising and marketing for the
closed-end funds; maintaining its closed-end fund website; and
providing educational seminars. With respect to closed-end funds
that utilize leverage through the issuance of auction rate
preferred securities (ARPS), the Board has
recognized the unprecedented market conditions in the auction
rate market industry with the failure of the auction process.
The Independent Board Members noted Nuveens efforts and
the resources and personnel employed to analyze the situation,
explore potential alternatives and develop and implement
solutions that serve the interests of the affected funds and all
of their respective shareholders. The Independent Board Members
further noted Nuveens commitment and efforts to keep
investors and financial advisers informed as to its progress in
addressing the ARPS situation through, among other things,
conference calls, press releases, and information posted on its
website as well as its refinancing activities. The Independent
Board Members also noted Nuveens continued support for
holders of preferred shares of its closed-end funds by, among
other things, seeking distribution for preferred shares with new
market participants, managing relations with remarketing agents
and the broker community, maintaining the leverage and risk
management of leverage and maintaining systems necessary to test
compliance with rating agency criteria.
37
Annual Investment
Management Agreement
APPROVAL PROCESS (continued)
Based on their review, the Independent Board Members found that,
overall, the nature, extent and quality of services provided
(and expected to be provided) to the Fund under the Investment
Management Agreement or respective
Sub-Advisory
Agreement, as applicable, were satisfactory.
|
|
B.
|
The Investment
Performance of the Fund and Fund Advisers
|
The Board considered the investment performance of the Fund,
including the Funds historic performance as well as its
performance compared to funds with similar investment objectives
(the Performance Peer Group) based on data
provided by an independent third party (as described below). In
addition, the Independent Board Members reviewed the Funds
historic performance compared to recognized
and/or
customized benchmarks (as applicable).
In evaluating the performance information, the Board considered
whether the Fund has operated within its investment objectives
and parameters and the impact that the investment mandates may
have had on performance. In addition, in comparing the
Funds performance with that of its Performance Peer Group,
the Independent Board Members took into account that the closest
Performance Peer Group in certain instances may not adequately
reflect the respective funds investment objectives and
strategies thereby hindering a meaningful comparison of the
funds performance with that of the Performance Peer Group.
These Performance Peer Groups include that of the Fund.
The Independent Board Members reviewed performance information
including, among other things, total return information compared
with the Funds Performance Peer Group as well as
recognized
and/or
customized benchmarks (as appropriate) for the one-, three- and
five-year periods (as applicable) ending December 31, 2007
and with the Funds Performance Peer Group for the quarter,
one-, three-, and five- year periods ending March 31, 2008
(as applicable). This information supplemented the Fund
performance information provided to the Board at each of its
quarterly meetings. Based on their review, the Independent Board
Members determined that the Funds investment performance
over time had been satisfactory.
|
|
C.
|
Fees, Expenses
and Profitability
|
1. Fees and
Expenses
The Board evaluated the management fees and expenses of the Fund
reviewing, among other things, such Funds gross management
fees (which take into account breakpoints), net management fees
(which take into account fee waivers or reimbursements) and
total expense ratios (before and after expense reimbursements
and/or
waivers) in absolute terms as well as compared to the gross
management fees, net management fees (after waivers
and/or
reimbursements) and total expense ratios (before and after
waivers) of a comparable universe of unaffiliated funds based on
data provided by an independent data provider (the Peer
Universe)
and/or a
more focused subset of funds therein (the Peer
Group). The Independent Board Members further reviewed
data regarding the construction of Peer Groups as well as the
methods of measurement for the fee and expense analysis and the
performance analysis. In reviewing the comparisons of fee and
expense information, the Independent Board Members took into
account that in certain instances various factors such as the
size of the Fund relative to peers, the size and particular
composition of the Peer Group, the investment objectives of the
peers, expense anomalies, and the timing of information used may
impact the comparative data, thereby limiting the ability to
make a meaningful comparison. The Independent Board Members also
considered, among other things, the differences in the use of
leverage. In addition, the Independent Board Members noted the
limited Peer Groups available for the Nuveen funds with
multi-sleeves of investments. In reviewing the fee schedule for
the Fund, the Independent Board Members also considered the
fund-level and complex-wide breakpoint schedules (described in
further detail below) and any fee waivers and reimbursements
provided by Nuveen (applicable, in particular, for certain
closed-end funds launched since 1999). Based on their review of
the fee and expense information provided, the Independent Board
Members determined that the Funds management fees and net
total expense ratio were reasonable in light of the nature,
extent and quality of services provided to the Fund.
38
2. Comparisons
with the Fees of Other Clients
The Independent Board Members further reviewed information
regarding the nature of services and fee rates offered by NAM to
other clients. Such clients include separately managed accounts
(both retail and institutional accounts) and funds that are not
offered by Nuveen but are
sub-advised
by one of Nuveens investment management teams. In
evaluating the comparisons of fees, the Independent Board
Members noted that the fee rates charged to the Fund and other
clients vary, among other things, because of the different
services involved and the additional regulatory and compliance
requirements associated with registered investment companies,
such as the Fund. Accordingly, the Independent Board Members
considered the differences in the product types, including, but
not limited to, the services provided, the structure and
operations, product distribution and costs thereof, portfolio
investment policies, investor profiles, account sizes and
regulatory requirements. The Independent Board Members noted, in
particular, that the range of services provided to the Fund (as
discussed above) is much more extensive than that provided to
separately managed accounts. Given the inherent differences in
the products, particularly the extensive services provided to
the Fund, the Independent Board Members believe such facts
justify the different levels of fees.
In considering the fees of the
Sub-Advisers,
the Independent Board Members also considered the pricing
schedule or fees that each
Sub-Adviser
charges for similar investment management services for other
fund sponsors or clients (such as retail
and/or
institutional managed accounts) as applicable. With respect to
Symphony, the Independent Board Members also reviewed the fees
it assesses for equity and taxable fixed-income hedge funds and
hedge accounts it manages, which include a performance fee. In
addition, the Independent Board Members noted that with respect
to Wellington and Security Capital, the
Sub-Advisers
that are unaffiliated with Nuveen, such fees were the result of
arms-length negotiations.
3. Profitability
of Fund Advisers
In conjunction with its review of fees, the Independent Board
Members also considered the profitability of Nuveen for its
advisory activities (which incorporated Nuveens
wholly-owned affiliated
sub-advisers)
and its financial condition. The Independent Board Members
reviewed the revenues and expenses of Nuveens advisory
activities for the last two years and the allocation methodology
used in preparing the profitability data. The Independent Board
Members noted this information supplemented the profitability
information requested and received during the year to help keep
them apprised of developments affecting profitability (such as
changes in fee waivers and expense reimbursement commitments).
In this regard, the Independent Board Members noted that they
had also appointed an Independent Board Member as a point person
to review and keep them apprised of changes to the profitability
analysis
and/or
methodologies during the year. The Independent Board Members
considered Nuveens profitability compared with other fund
sponsors prepared by two independent third party service
providers as well as comparisons of the revenues, expenses and
profit margins of various unaffiliated management firms with
similar amounts of assets under management prepared by Nuveen.
In reviewing profitability, the Independent Board Members
recognized the subjective nature of determining profitability
which may be affected by numerous factors including the
allocation of expenses. Further, the Independent Board Members
recognized the difficulties in making comparisons as the
profitability of other advisers generally is not publicly
available and the profitability information that is available
for certain advisers or management firms may not be
representative of the industry and may be affected by, among
other things, the advisers particular business mix,
capital costs, types of funds managed and expense allocations.
Notwithstanding the foregoing, the Independent Board Members
reviewed Nuveens methodology and assumptions for
allocating expenses across product lines to determine
profitability. In reviewing profitability, the Independent Board
Members recognized Nuveens investment in its fund business.
Based on its review, the Independent Board Members concluded
that Nuveens level of profitability for its advisory
activities was reasonable in light of the services provided.
With respect to Wellington and Security Capital, given that
these
Sub-Advisers
are unaffiliated with Nuveen, the Independent Board Members also
considered such
Sub-Advisers
revenues, expenses (including the basis for allocating expenses)
and profitability margins (pre- and post-tax). Based on their
review, the Independent Board Members were satisfied that the
respective
Sub-Advisers
level of profitability was reasonable in light of the services
provided.
39
Annual Investment
Management Agreement
APPROVAL PROCESS (continued)
In evaluating the reasonableness of the compensation, the
Independent Board Members also considered other amounts paid to
a Fund Adviser by the Fund as well as any indirect benefits
(such as soft dollar arrangements, if any) the Fund Adviser
and its affiliates receive, or are expected to receive, that are
directly attributable to the management of the Fund, if any. See
Section E below for additional information on indirect
benefits the Fund Adviser may receive as a result of its
relationship with the Fund. Based on their review of the overall
fee arrangements of the Fund, the Independent Board Members
determined that the advisory fees and expenses of the Fund were
reasonable.
|
|
D.
|
Economies of
Scale and Whether Fee Levels Reflect These Economies of
Scale
|
With respect to economies of scale, the Independent Board
Members recognized the potential benefits resulting from the
costs of a fund being spread over a larger asset base. The
Independent Board Members therefore considered whether the Fund
has appropriately benefited from any economies of scale and
whether there is potential realization of any further economies
of scale. In considering economies of scale, the Independent
Board Members have recognized that economies of scale are
difficult to measure and predict with precision, particularly on
a
fund-by-fund
basis. Notwithstanding the foregoing, one method to help ensure
the shareholders share in these benefits is to include
breakpoints in the advisory fee schedule. Accordingly, the
Independent Board Members reviewed and considered the fund-level
breakpoints in the advisory fee schedules that reduce advisory
fees. In this regard, given that the Fund is a closed-end fund,
the Independent Board Members recognized that although the Fund
may from time to time make additional share offerings, the
growth in its assets will occur primarily through appreciation
of the Funds investment portfolio.
In addition to fund-level advisory fee breakpoints, the Board
also considered the Funds complex-wide fee arrangement.
Pursuant to the complex-wide fee arrangement, the fees of the
funds in the Nuveen complex, including the Fund, are reduced as
the assets in the fund complex reach certain levels. In
evaluating the complex-wide fee arrangement, the Independent
Board Members recognized that the complex-wide fee schedule was
recently revised in 2007 to provide for additional fee savings
to shareholders and considered the amended schedule. The
Independent Board Members further considered that the
complex-wide fee arrangement seeks to provide the benefits of
economies of scale to fund shareholders when total fund complex
assets increase, even if assets of a particular fund are
unchanged or have decreased. The approach reflects the notion
that some of Nuveens costs are attributable to services
provided to all its funds in the complex and therefore all funds
benefit if these costs are spread over a larger asset base.
Based on their review, the Independent Board Members concluded
that the breakpoint schedule and complex-wide fee arrangement
were acceptable and desirable in providing benefits from
economies of scale to shareholders.
In evaluating fees, the Independent Board Members received and
considered information regarding potential fall out
or ancillary benefits the respective Fund Adviser or its
affiliates may receive as a result of its relationship with the
Fund. In this regard, the Independent Board Members considered
revenues received by affiliates of NAM for serving as agent at
Nuveens preferred trading desk and for serving as a
co-manager in the initial public offering of new closed-end
exchange traded funds.
In addition to the above, the Independent Board Members
considered whether the Fund Adviser received any benefits
from soft dollar arrangements whereby a portion of the
commissions paid by the Fund for brokerage may be used to
acquire research that may be useful to the Fund Adviser in
managing the assets of the Fund and other clients. With respect
to NAM, the Independent Board Members noted that NAM does not
currently have any soft dollar arrangements; however, to the
extent certain bona fide agency transactions that occur on
markets that traditionally trade on a principal basis and
riskless principal transactions are considered as generating
commissions, NAM intends to comply with the
applicable safe harbor provisions.
The Independent Board Members also considered that NWQ and
Security Capital may benefit from their soft dollar arrangements
pursuant to which they receive research from brokers that
execute the Funds portfolio transactions. In addition, the
Independent Board Members noted that while Wellington does have
some soft dollar arrangements with
40
respect to some of its agency
trades, the trades in fixed-income securities held by the Fund
are done on a principal basis and do not generate soft dollar
credits. The Independent Board Members noted that the
profitability of the foregoing
Sub-Advisers
may be lower if they were required to pay for this research with
hard dollars. The Board also considered that Symphony currently
does not enter into soft dollar arrangements; however, it has
adopted a soft dollar policy in the event it does so in the
future.
Based on their review, the Independent Board Members concluded
that any indirect benefits received by a Fund Adviser as a
result of its relationship with the Fund were reasonable and
within acceptable parameters.
The Independent Board Members did not identify any single factor
discussed previously as all-important or controlling. The Board
Members, including the Independent Board Members, unanimously
concluded that the terms of the Investment Management Agreement
and
Sub-Advisory
Agreements are fair and reasonable, that the respective
Fund Advisers fees are reasonable in light of the
services provided to the Fund and that the Investment Management
Agreement and the
Sub-Advisory
Agreements be renewed.
41
Reinvest Automatically
EASILY and CONVENIENTLY
Nuveen makes reinvesting easy. A phone call is all it takes
to set up your reinvestment account.
Nuveen Closed-End
Funds Dividend Reinvestment Plan
Your Nuveen Closed-End Fund allows you to conveniently reinvest
dividends and/or capital gains distributions in additional Fund
shares.
By choosing to reinvest, youll be able to invest money
regularly and automatically, and watch your investment grow
through the power of tax-free compounding. Just like dividends
or distributions in cash, there may be times when income or
capital gains taxes may be payable on dividends or distributions
that are reinvested.
It is important to note that an automatic reinvestment plan does
not ensure a profit, nor does it protect you against loss in a
declining market.
Easy and
convenient
To make recordkeeping easy and convenient, each month
youll receive a statement showing your total dividends and
distributions, the date of investment, the shares acquired and
the price per share, and the total number of shares you own.
How shares are
purchased
The shares you acquire by reinvesting will either be purchased
on the open market or newly issued by the Fund. If the shares
are trading at or above net asset value at the time of
valuation, the Fund will issue new shares at the greater of the
net asset value or 95% of the then-current market price. If the
shares are trading at less than net asset value, shares for your
account will be purchased on the open market. If the Plan Agent
begins purchasing Fund shares on the open market while shares
are trading below net asset value, but the Funds shares
subsequently trade at or above their net asset value before the
Plan Agent is able to complete its purchases, the Plan Agent may
cease open-market purchases and may invest the uninvested
portion of the distribution in newly-issued Fund shares at a
price equal to the greater of the shares net asset value
or 95% of the shares market value on the last business day
immediately prior to the purchase date. Dividends and
distributions received to purchase shares in the open market
will normally be invested shortly after the dividend payment
date. No interest will be paid on dividends and distributions
awaiting reinvestment. Because the market price of the shares
may increase before purchases are completed, the average
purchase price per share may exceed the market price at the time
of valuation, resulting in the acquisition of fewer shares than
if the dividend or distribution had been paid in shares issued
by the Fund. A pro rata portion of any applicable brokerage
commissions on open market purchases will be paid by Plan
participants. These commissions usually will be lower than those
charged on individual transactions.
42
Flexible
You may change your distribution option or withdraw from the
Plan at any time, should your needs or situation change. Should
you withdraw, you can receive a certificate for all whole shares
credited to your reinvestment account and cash payment for
fractional shares, or cash payment for all reinvestment account
shares, less brokerage commissions and a $2.50 service fee.
You can reinvest whether your shares are registered in your
name, or in the name of a brokerage firm, bank, or other
nominee. Ask your investment advisor if his or her firm will
participate on your behalf. Participants whose shares are
registered in the name of one firm may not be able to transfer
the shares to another firm and continue to participate in the
Plan.
The Fund reserves the right to amend or terminate the Plan at
any time. Although the Fund reserves the right to amend the Plan
to include a service charge payable by the participants, there
is no direct service charge to participants in the Plan at this
time.
Call today to
start reinvesting dividends and/or distributions
For more information on the Nuveen Automatic Reinvestment Plan
or to enroll in or withdraw from the Plan, speak with your
financial advisor or call us at (800) 257-8787.
43
Glossary of
TERMS USED in this REPORT
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n
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Average Annual Total Return: This is a commonly
used method to express an investments performance over a
particular, usually multi-year time period. It expresses the
return that would have been necessary each year to equal the
investments actual cumulative performance (including
change in NAV or market price and reinvested dividends and
capital gains distributions, if any) over the time period being
considered.
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n
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Collateralized Debt Obligations (CDOs):
Collateralized debt obligations are a type of asset-backed
security constructed from a portfolio of fixed-income assets.
CDOs usually are divided into different tranches having
different ratings and paying different interest rates. Losses,
if any, are applied in reverse order of seniority and so junior
tranches generally offer higher coupons to compensate for added
default risk.
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n
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Market Yield (also known as Dividend Yield or Current
Yield): Market yield is based on the Funds current
annualized quarterly distribution divided by the Funds
current market price. The Funds quarterly distributions to
its shareholders may be comprised of ordinary income, net
realized capital gains and, if at the end of the calendar year
the Funds cumulative net ordinary income and net realized
gains are less than the amount of the Funds distributions,
a tax return of capital.
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n
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Net Asset Value (NAV): A Funds common share
NAV per share is calculated by subtracting the liabilities of
the Fund (including any Preferred shares issued in order to
leverage the Fund) from its total assets and then dividing the
remainder by the number of shares outstanding. Fund NAVs are
calculated at the end of each business day.
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44
Board of Trustees
John P. Amboian
Robert P. Bremner
Jack B. Evans
William C. Hunter
David J. Kundert
William J. Schneider
Judith M. Stockdale
Carole E. Stone
Terence J. Toth
Fund Manager
Nuveen Asset Management
333 West Wacker Drive
Chicago, IL 60606
Custodian
State Street Bank & Trust
Company
Boston, MA
Transfer Agent and
Shareholder Services
State Street Bank & Trust
Company
Nuveen Funds
P.O. Box 43071
Providence, RI 02940-3071
(800) 257-8787
Legal Counsel
Chapman and Cutler LLP
Chicago, IL
Independent Registered
Public Accounting Firm
Ernst & Young LLP
Chicago, IL
The Fund intends to repurchase or
redeem shares of its own common or preferred stock in the future
at such times and in such amounts as is deemed advisable. No
shares were repurchased or redeemed during the period covered by
this report. Any future repurchases or redemptions will be
reported to shareholders in the next annual or semi-annual
report.
47
QUARTERLY
PORTFOLIO OF INVESTMENTS AND PROXY VOTING INFORMATION
You may obtain (i) the Funds quarterly portfolio of
investments, (ii) information regarding how the Fund voted
proxies relating to portfolio securities held during the most
recent
twelve-month
period ended June 30, 2008, and (iii) a description of
the policies and procedures that the Fund used to determine how
to vote proxies relating to portfolio securities are available
without charge, upon request, by calling Nuveen Investments
toll-free at (800) 257-8787 or on Nuveens website at
www.nuveen.com.
You may also obtain this and other Fund information directly
from the Securities and Exchange Commission (SEC).
The SEC may charge a copying fee for this information. Visit the
SEC on-line at http://www.sec.gov or in person at the SECs
Public Reference Room in Washington, D.C. Call the SEC at
(202) 942-8090 for room hours and operation. You may also
request Fund information by sending an
e-mail
request to publicinfo@sec.gov or by writing to the SECs
Public Reference Section at 100 F Street NE,
Washington, D.C. 20549.
CEO Certification
Disclosure
The Funds Chief Executive Officer has submitted to the New
York Stock Exchange (NYSE) the annual CEO certification as
required by Section 303A.12(a) of the NYSE Listed
Company Manual.
The Fund has filed with the Securities and Exchange Commission
the certification of its Chief Executive Officer and Chief
Financial Officer required by Section 302 of the
Sarbanes-Oxley Act.
Nuveen Investments:
SERVING
INVESTORS FOR
GENERATIONS
Since 1898, financial advisors and their clients have relied on
Nuveen Investments to provide dependable investment solutions.
For the past century, Nuveen Investments has adhered to the
belief that the best approach to investing is to apply
conservative risk-management principles to help minimize
volatility.
Building on this tradition, we today offer a range of high
quality equity and fixed-income solutions that are integral to a
well-diversified core portfolio. Our clients have come to
appreciate this diversity, as well as our continued adherence to
proven, long-term investing principles.
We offer many
different investing solutions for our clients different
needs.
Nuveen Investments is a global investment management firm that
seeks to help secure the long-term goals of institutions and
high net worth investors as well as the consultants and
financial advisors who serve them. Nuveen Investments markets
its growing range of specialized investment solutions under the
high-quality brands of HydePark, NWQ, Nuveen, Rittenhouse,
Santa Barbara, Symphony and Tradewinds. In total, the
Company managed $152 billion of assets on June 30,
2008.
Find out how we
can help you reach your financial goals.
To learn more about the products and services Nuveen Investments
offers, talk to your financial advisor, or call us at
(800) 257-8787. Please read the information provided
carefully before you invest.
Be sure to obtain a prospectus, where applicable. Investors
should consider the investment objective and policies, risk
considerations, charges and expenses of the Fund carefully
before investing. The prospectus contains this and other
information relevant to an investment in the Fund. For a
prospectus, please contact your securities representative or
Nuveen Investments, 333 W. Wacker Dr., Chicago, IL
60606. Please read the prospectus carefully before you
invest or send money.
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Learn more about Nuveen Funds
at:
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www.nuveen.com/cef
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Share prices
Fund details
Daily financial news
Investor education
Interactive planning tools
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ESA-B-0608D
ITEM 2. CODE OF ETHICS.
Not applicable to this filing.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
Not applicable to this filing.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Not applicable to this filing.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
Not applicable to this filing.
ITEM 6. SCHEDULE OF INVESTMENTS.
See Portfolio of Investments in Item 1.
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES.
Not applicable to this filing.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable to this filing.
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT
COMPANY AND AFFILIATED PURCHASERS.
Not applicable.
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
There have been no material changes to the procedures by which shareholders may
recommend nominees to the Registrants Board implemented after the registrant
last provided disclosure in response to this item.
ITEM 11. CONTROLS AND PROCEDURES.
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(a) |
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The registrants principal executive and principal financial
officers, or persons performing similar functions, have concluded
that the registrants disclosure controls and procedures (as defined
in Rule 30a-3(c) under the Investment Company Act of 1940, as
amended (the 1940 Act) (17 CFR 270.30a-3(c))) are effective, as of
a date within 90 days of the filing date of this report that
includes the disclosure required by this paragraph, based on their
evaluation of the controls and procedures required by Rule 30a-3(b)
under the 1940 Act (17 CFR 270.30a-3(b)) and Rules 13a-15(b) or
15d-15(b) under the Securities Exchange Act of 1934, as amended (the
Exchange Act)(17 CFR 240.13a-15(b) or 240.15d-15(b)). |
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(b) |
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There were no changes in the registrants internal control over
financial reporting (as defined in Rule 30a-3(d) under the 1940 Act
(17 CFR 270.30a-3(d)) that occurred during the second fiscal quarter
of the period covered by this report that has materially affected,
or is reasonably likely to materially affect, the registrants
internal control over financial reporting. |
ITEM 12. EXHIBITS.
File the exhibits listed below as part of this Form.
(a)(1) Any code of ethics, or amendment thereto, that is the subject of the
disclosure required by Item 2, to the extent that the registrant intends to
satisfy the Item 2 requirements through filing of an exhibit: Not applicable to
this filing.
(a)(2) A separate certification for each principal executive officer and
principal financial officer of the registrant as required by Rule 30a-2(a) under
the 1940 Act (17 CFR 270.30a-2(a)) in the exact form set forth below: Ex-99.CERT
attached hereto.
(a)(3) Any written solicitation to purchase securities under Rule 23c-1 under
the 1940 Act (17 CFR 270.23c-1) sent or given during the period covered by the
report by or on behalf of the registrant to 10 or more persons: Not applicable.
(b) If the report is filed under Section 13(a) or 15(d) of the Exchange Act,
provide the certifications required by Rule 30a-2(b) under the 1940 Act (17 CFR
270.30a-2(b)); Rule 13a-14(b) or Rule 15d-14(b) under the Exchange Act (17 CFR
240.13a-14(b) or 240.15d-14(b)), and Section 1350 of Chapter 63 of Title 18 of
the United States Code (18 U.S.C. 1350) as an exhibit. A certification furnished
pursuant to this paragraph will not be deemed filed for purposes of Section 18
of the Exchange Act (15 U.S.C. 78r), or otherwise subject to the liability of
that section. Such certification will not be deemed to be incorporated by
reference into any filing under the Securities Act of 1933 or the Exchange Act,
except to the extent that the registrant specifically incorporates it by
reference. Ex-99.906 CERT attached hereto.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
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(Registrant) Nuveen Diversified Dividend and Income Fund |
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By (Signature and Title)* |
/s/ Kevin J. McCarthy
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Kevin J. McCarthy |
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Vice President and Secretary |
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Date: September 8, 2008
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
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By (Signature and Title)* |
/s/ Gifford R. Zimmerman
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Gifford R. Zimmerman |
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Chief Administrative Officer
(principal executive officer) |
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Date: September 8, 2008
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By (Signature and Title)* |
/s/ Stephen D. Foy
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Stephen D. Foy |
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Vice President and Controller
(principal financial officer) |
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Date: September 8, 2008
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* |
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Print the name and title of each signing officer under his or her signature. |